Generational Wealth Isn’t Built Alone: Why Family Meetings Matter
by Greg Weimer
Chief Executive Officer, Chairman
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Imagine this:
The Smith family gathers around their living room—three generations in one space, from a retired patriarch to young adults just entering the workforce. They aren’t here for a holiday or a celebration. Instead, they’ve come together for something just as meaningful: a family meeting.
On the agenda? The family’s shared values, long-term financial goals, philanthropic interests, and how their wealth can serve future generations—purposefully.
This isn’t a one-time conversation. It’s a recurring practice that’s become a pillar of the Smiths’ legacy—and a powerful example of how family meetings can turn wealth building into a shared vision across generations.
Why Family Meetings Matter
We often think of generational wealth in terms of dollars passed down—but the true strength of a legacy lies in clarity, communication, and shared purpose. That’s where family meetings come in.
These gatherings create space for:
Open dialogue about wealth, values, and vision
Education for younger generations around financial literacy and responsibility
Alignment around philanthropic goals or business succession plans
Assistance in Preventing misunderstandings or disputes down the line
When done right, they can reduce uncertainty and build trust—two essentials for sustaining generational wealth.
The Role of Family Meetings in Wealth Building
Wealth building isn’t just about smart investments or tax-efficient strategies. It’s also about intentional planning that spans decades and generations. Family meetings support this by:
Clarifying goals: What does the family want their wealth to accomplish—in their lifetimes and beyond?
Preparing heirs: Future generations are more likely to steward wealth responsibly when they understand its origins and intentions.
Fostering unity: Shared decision-making can reduce the risk of family conflict and builds a stronger foundation.
When families come together regularly to revisit these topics, they can be more resilient in times of change and more proactive about their financial future.
Why You Don’t Have to Do It Alone
Leading a family meeting—especially one about money—can feel intimidating. A trusted wealth management partner can make all the difference.
At Confluence, we can help guide family meetings with:
Facilitation and structure that keeps conversations productive and inclusive
Customized agendas aligned with your family’s goals, values, and unique dynamics
Financial insights to inform key decisions about estate planning, charitable giving, and more
We serve as a neutral voice, helping to create an environment where every generation feels heard, and every goal is clear.
Start the Conversation That Builds Your Legacy
Whether you’re navigating a business transition, planning your estate, or simply want to pass down values alongside wealth, family meetings are a powerful tool. When approached with intention and guided expertise, they can become more than a discussion—they become a defining part of your family’s story.
About the Author
At the core of his personal and professional life, Greg is passionate about helping individuals and families maximize their lives and legacies. His dedication to this mission shines through as an individual, wealth…
April was a volatile month for stocks, bonds and currencies as investors digested the implications of rapidly changing trade policies.
After hitting a high level for 2025 on February 19th, the S&P 500 fell nearly 19% through April 8th. The index recovered from those levels, ending April down just -0.68% for the month and ending April at -4.92% YTD.
Other equity markets finished April on a stronger note, such as Developed International (MSCI EAFE NR Index) equities. The MSCI EAFE continued its strong 2025 through April, finishing the month up +4.58%, bringing YTD 2025 returns to +11.76%.
Outside of equity markets, the bond market recovered after a choppy start to April, with the Bloomberg US Aggregate Bond TR Index finishing April +0.39%, illustrating diversification benefits from bond allocations in portfolios.
US Dollar Decline
One surprise in 2025 has been the US dollar and the price movements versus other major currencies. Unlike major stock and bond markets which have recovered from late March/early April, the US dollar continues to fall versus major currencies. The US dollar depreciating, while US stocks are down, is a shift in behavior over the past 15-20 years: the US dollar had largely strengthened during times of uncertainty. The decline of the US dollar has had a significant impact on equity markets already in 2025: year-to-date international equities have outperformed the U.S. by the largest margin since 1993 (roughly 14%). While international valuations were cheaper, the shifting economic outlook and change in the US dollar made significant contributions to strong results YTD for international equities.
Investors are also weighing the impact of reduced international trade, something that is likely contributing to the US dollars decline. Any long-term reduction in trade could lessen demand for US dollars, another major long-term trend that could be shifting.
Source: FactSet, J.P. Morgan Asset Management; Currencies in the DXY Index are: British pound, Canadian dollar, euro, Japanese yen, Swedish krona and Swiss franc.
What’s on Deck for May?
Earnings for the first quarter of 2025 will be reported through May, with investors focusing on forward guidance given the changes in trade policy in 2025.
The Federal Reserve meets on May 7th, but markets are not expecting any change to interest rate policy at this meeting.
Ahead of the July extension, investors will be monitoring for any new trade deals.
Bill has more than 12 years of experience in the investment industry, most recently as Managing Director of Investments at a private wealth management firm. In his role at Confluence, Bill chairs the…
Retirement Planning Tips for a More Comfortable Future
by Chuck Zuzak
CFP®, Director of Wealth Planning
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Retirement planning is one of the most important financial steps you can take to help create a comfortable and secure future. Typically, the earlier you start, the better positioned you’ll be to achieve your financial goals. Whether you’re just beginning your career or are approaching retirement, having a structured plan is essential. In this blog, we’ll explore key tips for effective retirement planning, review the various savings vehicles available, and discuss how a wealth management firm like Confluence Financial Partners can help you stay on track.
Start Retirement Planning Early
We believe one of the best things you can do for your future self is to start retirement planning as soon as possible. The power of compound interest can allow your savings to grow exponentially over time, meaning the earlier you begin, the less you need to contribute later. Even if retirement feels far off, taking small, consistent steps today can make a significant impact.
For example, Mia saves $200 per month for 40 years, while Jennifer waits 10 years to start but doubles her contribution to $400 per month for 30 years. Despite contributing twice as much, with a 6% return, Jennifer would have $827,062, whereas Mia, also with a 6% return would have $987,428. By waiting just 10 years to start, even twice the monthly contribution is not enough to catchup. This demonstrates the power of compound interest—starting earlier, even with smaller contributions, can yield greater long-term benefits than larger contributions made later.
The hypothetical examples assume an 6% average annual return. These are point-in-time views and as such do not take into account any growth or loss during retirement. Without investment growth/loss during retirement, a 4% annual withdrawal rate would deplete retirement savings in 25 years. Examples are for illustrative purposes only and do not reflect the results of any particular investment, which will fluctuate with market conditions, or taxes that may be owed on tax-deferred contributions, including the 10% penalty for withdrawals taken before age 59½. Regular investing does not ensure a profit or protect against loss in a declining market. These numbers do not reflect any fees charged to the account.
Set Clear Retirement Goals
Understanding what you want your retirement to look like can help shape your savings strategy. Consider factors such as at what age you want to retire, the lifestyle you wish to maintain, and any significant expenses like travel or healthcare. Establishing clear, realistic goals will help guide your investment and savings decisions.
Understand Your Retirement Savings Vehicles
A variety of savings vehicles are available to help you build a strong retirement portfolio. Each comes with unique advantages and benefits:
Employer-Sponsored Plans
401(k) & 403(b) Plans – Many employers offer these tax-advantaged retirement accounts. Contributions to traditional 401(k) and 403(b) plans can be made pre-tax, reducing your taxable income, and in some cases, after tax into Roth 401(k). Some employers even provide matching contributions, which is essentially free money toward your retirement.
457 Plans – Available to government employees and some non-profit workers, this plan allows tax-deferred savings with flexible withdrawal options.
Pension Plans – Some companies offer defined-benefit pension plans, which provide a set income stream in retirement. These plans were common in the past, but in present times, few companies offer pension plans.
Individual Retirement Accounts (IRAs)
Traditional IRA – Contributions may be tax-deductible (dependent on one’s annual income), with tax-deferred growth until withdrawals in retirement.
Roth IRA – Contributions are made after tax, but qualified withdrawals are completely tax-free, making this a great option for long-term tax planning. Roth IRAs are only available to those earning under preset IRS levels which adjust annually.
SEP IRA & SIMPLE IRA – These plans are ideal for self-employed individuals and small business owners, offering higher contribution limits than traditional IRAs.
Self-Employed & Alternative Retirement Plans
Solo 401(k) – Designed for self-employed individuals, this plan allows for both employee and employer contributions, maximizing tax-advantaged savings.
Health Savings Account (HSA) – While primarily for medical expenses, HSAs can be used as a long-term savings tool due to their tax-free growth and withdrawal benefits. Funds are contributed pre-tax and may be used tax free for approved health related expenses. Distributions that are not used for qualified medical expenses are taxed as ordinary income and avoid a 20% penalty if you are age 65 and older or disabled. In these instances, an HSA can supplement your retirement savings approach similar to a traditional IRA.
Diversify Your Investments
A well-rounded retirement plan should include diversification across various asset classes. Stocks, bonds, mutual funds, exchange traded funds (ETFs), and other investments help manage risk while helping to optimize growth. Balancing your portfolio based on your risk tolerance, time horizon, and retirement goals can be very impactful to long-term financial success.
Work with a Wealth Management Firm
Retirement planning can be complex, and partnering with a trusted financial advisor or certified financial planner can help you navigate the process. A wealth management firm like Confluence Financial Partners provides professional guidance, helping to ensure you have a personalized strategy tailored to your unique financial situation. Here’s how they can assist:
Customized Financial Plans – Personalized strategies based on your income, goals, and risk tolerance.
Investment Management – Diversified portfolio strategies designed to grow and protect your wealth.
Tax-Efficient Planning – Structuring your withdrawals and contributions to minimize tax liabilities.
Ongoing Adjustments – Life circumstances change, and your plan should evolve accordingly. A professional team helps you stay on track to meet your retirement goals.
Stay Consistent and Review Your Plan Regularly
Retirement planning is not a one-time event but an ongoing process. Regularly reviewing your retirement savings, investment allocations, and financial goals help to ensure that you remain on the right path. Making necessary adjustments as life changes—whether due to career shifts, market fluctuations, or personal circumstances—keeps your retirement strategy aligned with your objectives.
Conclusion
Retirement planning can be essential for financial security and peace of mind. By understanding the various savings vehicles available, diversifying your investments, and working with a wealth management firm like Confluence Financial Partners, you can create a roadmap to a successful retirement. The key is to start early, stay informed, and seek professional guidance when needed. With the right plan in place, you can enjoy your retirement years with confidence and financial stability.
Ready to take control of your retirement planning? Contact Confluence Financial Partners today to begin your journey toward a secure and prosperous future.
About the Author
Chuck joins Confluence Financial Partners with 13 years of experience in the financial services industry, most recently as Director of Financial Planning at JFS Wealth Advisors. At a fundamental level, Chuck’s passion for…
A Strategic Approach to Balancing College Costs and Retirement Goals
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For many parents, the desire to fund their child’s education is strong. Striking the right balance between saving for college and ensuring a secure retirement, however, requires careful financial planning. With the right strategies, families can make progress towards both priorities without unnecessary financial strain.
Why Parents Should Consider Not Sacrificing Retirement for Tuition
It’s natural to want to provide the best opportunities for your children, but delaying or reducing retirement savings to pay for college could have long-term consequences. Unlike college tuition, which offers various funding options like student loans and scholarships, there are no loans for retirement. Prioritizing your future financial security can help ensure that you won’t become a financial burden on your children later in life.
Additionally, withdrawing from retirement accounts early or reducing contributions could mean missing out on years of compound interest, potentially making it harder to reach retirement goals. Instead, parents should aim for a balanced approach that considers both short-term education costs and long-term financial stability.
Strategies for Funding Both Without Financial Strain
Achieving a balance between paying for college and securing retirement requires a well-thought-out plan. Here are some key strategies to consider:
1. Maximize Tax-Advantaged Savings Accounts
Using tax-advantaged savings vehicles can help optimize both education and retirement savings:
529 Accounts: A 529 account allows parents to save for college while benefiting from tax-free withdrawals for qualified expenses. Some states also offer tax deductions for contributions.
Coverdell Education Savings Accounts (ESAs): These accounts offer tax-free growth for education expenses, though they have lower contribution limits than 529 accounts.
Retirement Accounts (401(k), IRA, Roth IRA): Contributing to retirement accounts should remain a priority. Some retirement accounts allow penalty-free withdrawals for education expenses, but typically this should only be a last resort.
2. Encourage Student Contributions
Students can play an active role in funding their education. Encourage them to apply for scholarships, consider work-study programs, or take on part-time jobs to reduce the financial burden. Student loans are another option, and with strategic borrowing, they can help bridge the gap without overburdening the family.
3. Set a Realistic Budget and Explore Cost-Effective Education Options
Not all colleges come with a hefty price tag. Families could explore in-state public universities, community colleges, or schools that may offer generous financial aid packages. Creating a clear college budget can help costs remain manageable without derailing retirement plans.
4. Work with Confluence Financial Partners to Optimize Your Financial Plan
At Confluence Financial Partners, we can help families develop a comprehensive plan that balances saving for college and retirement. Our wealth managers can provide strategies for:
Allocating investments to optimize tax advantages
Adjusting financial priorities based on income and expenses
Identifying the best ways to use student loans strategically
Exploring alternative funding sources, such as employer tuition assistance programs
We take a personalized approach, helping you create a strategy that best aligns with your unique financial goals while helping create long-term stability for both education and retirement.
Final Thoughts
Balancing college costs and retirement savings doesn’t have to be an either-or decision. By utilizing smart financial strategies, leveraging tax-advantaged savings vehicles like 529 accounts, and working with a financial planner like Confluence Financial Partners, families can simultaneously plan for their children’s education and their own retirement. It is key to start early, plan strategically, and make informed financial decisions that support long-term financial health.
If you’re ready to create a customized plan that considers both your retirement and your child’s education, contact Confluence Financial Partners today.
The first quarter of 2025 has been a period of dynamic shifts in global financial markets, marked by evolving economic policies, heightened uncertainty, and increased volatility equity markets. In this edition of Market Pulse, we analyze key investment trends, including the broad rotation from growth to value stocks, the resurgence of international equities, and the stabilizing role of fixed income markets.
Despite market volatility, history reminds us that corrections are a natural and expected part of long-term investing. The recent pullback in the S&P 500, while significant, aligns with historical trends, reinforcing the importance of diversification and disciplined investment strategies. International markets, buoyed by fiscal stimulus measures, have provided investors with new opportunities, while fixed income markets have continued their recovery.
Looking ahead to the second quarter, trade and fiscal policy developments will remain critical factors shaping investor sentiment. By maintaining a strategic and diversified approach focused on their objectives, investors can navigate uncertainty and capitalize on emerging opportunities. On behalf of Confluence Financial Partners, we thank you for your continued trust and confidence.
Bill Winkeler, CFA, CFP® Chief Investment Officer
Diversification Renaissance
• Uncertainty around the implementation of new policies and softening economic data weighed on markets • S&P 500 had its worst quarter since 2022 and its first correction (> 10% decline) since October 2023, an event that historically happens roughly 1.5 years • This sparked a rotation away from Magnificent 7 and Technology stocks to Value and International stocks, with international stocks posting their best relative quarter in over 25 years
What Happened in the First Quarter?
Investors spent the first three months of 2025 digesting the implementation of new policies, along with a shifting outlook for the economy. While “uncertainty” is often over-used, measures of uncertainty around trade and outlook for the economy spiked to very high levels, as investors sought more clarity around tariffs and related trade policies. The increase in uncertainty, combined with some softening of economic data (for example a mild increase in unemployment), helped to drive the first correction (decline greater than -10%) in the S&P 500 since October 2023. Previous market leaders – the “Magnificent 7” growth companies in the S&P 500 Index, were hit harder than the rest of the market, falling roughly -15% during the quarter. Importantly for investors, other equity markets and fixed income markets provided diversification benefits in the first quarter, and S&P 500 earnings expectations for 2025 have remained largely stable.
Diversification Means “You’re Always Having to Say You’re Sorry” The old adage for diversified investors was invoked frequently in 2023 and 2024, in an equity market led by a handful of US large growth companies. Early in 2025, diversified investors have had the chance to say “thank you”, as investors have rotated away from US large cap growth companies, into large cap value stocks, international stocks and bonds. Even within the S&P 500 Index, the Magnificent 7 Stocks fell roughly -15%, while the remaining 493 stocks in the S&P 500 Index were flat for the quarter.
Sources: Morningstar, Average S&P 500 Stock = S&P 500 Equal Weighted TR Index, US Large Caps = S&P 500 TR Index, US Large Cap Value = Russell 1000 Value TR Index, US Large Cap Growth = Russell 1000 Growth 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
The start to 2025 for international stocks has been one of the strongest in the past 25 years, as US investors benefitted from both rising foreign stock prices and the depreciation of the US dollar. International equities have been inexpensive but lacking strong fundamental catalysts, which began to change during the quarter. In Europe, Germany introduced a very large fiscal spending package to stimulate their economy, the largest in their history (exceeds the Marshall Plan and Reunification). The changing attitudes towards spending by European countries has been well received by investors.
Results for fixed income investors continued the positive trend in the first quarter of 2025 as well. After the worst calendar year in its history in 2022 (-13.01%, Bloomberg US Aggregate Bond TR index, data back to 1926), the bond index posted a gain of +2.78% in 1Q2025. This follows consecutive calendar year gains in 2023 (+5.53%) and 2024 (+1.25%). Interest rates have declined across the yield curve, with the 10-year Treasury yield finishing the quarter at 4.23%, down from intra-quarter highs of 4.79%.
Very Average Correction
In the previous edition, we noted that 2023 and 2024 were very strong years for the US equity market “The strong year for the S&P 500: 57 new all-time highs and consecutive +25% calendar year gains, was thanks in very large part to the largest companies in the index.” Early in 2025, investors were reminded that volatility is a very normal and common feature of equity market investing. From February 19th, the S&P 500 fell over -10% in less than 30 days, making it the 11th fastest correction since 1928. Quickness aside, the frequency was very average – 60th correction since 1926, the first since October 2023, right on the historical average frequency. Investors may be wondering if this will turn into a bear market (a decline greater than -20%): while no one has a crystal ball, out of the 59 previous corrections since 1926, only 17 ended up turning into a bear market (roughly 29%). The S&P 500 recently experienced a bear market in October 2022.
Source: First Trust, Bloomberg. Data from 4/29/1942 – 2/28/2025. Past performance is no guarantee of future results. For illustrative purposes only and not indicative of any actual investment. Investors cannot invest directly in an index.*Correction cycles are determined by identifying market declines in excess of the minimum declines noted above. The cycle ends when there is a recovery of the magnitude of the minimum decline needed for that correction size (i.e., a recovery of greater than 5%, 10%, 15% or 20%). After that recovery is noted, the algorithm begins searching for the next decline to start the cycle again. **Measures from the date of the market high to the date of the market low. The S&P 500 Index is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance.
Corrections and bear markets, along with normal intra-year declines, are the toll investors pay for the long-term results of equities. Since 1980, the S&P 500 TR Index has had average annual declines of roughly 14% every year but still finished the calendar year in positive territory 75% of the time. This illustrates the importance of staying invested during volatility and ensuring that your investment portfolio is aligned with your objectives and financial plan.
What’s Ahead for the Second Quarter?
Changes to trade policy are having a tangible effect on investor and consumer sentiment, with the potential to negatively impact economic growth. Both investors and the Federal Reserve are looking for greater clarity on how additional tariffs could be implemented, which will play a key role in any changes to the Federal Funds Rate in 2025. Within fiscal policy, any changes to tax policy in the United States are trending towards happening later in 2025, but developments there will be watched closely by investors. As discussed, international equities have benefitted from a strong fiscal impulse from Europe, with the implementation likely to be in focus during 2Q2025.
Bill has more than 12 years of experience in the investment industry, most recently as Managing Director of Investments at a private wealth management firm. In his role at Confluence, Bill chairs the…
Protecting Your Business Legacy: The Importance of Succession Planning
by Greg Weimer
Chief Executive Officer, Chairman
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For many business owners, their company represents more than just a source of income—it is a legacy built through years of dedication and perseverance. Ensuring the continuity of that legacy requires careful, strategic planning. Business succession planning is the structured process of transitioning ownership and leadership, helping to secure long-term stability and success for future generations.
However, succession planning is not merely about selecting a successor. It involves developing a comprehensive strategy that mitigates risks, maximizes business value, and lays out a seamless transition path. Without a well-defined plan, companies may face uncertainty, internal conflict, or disruptions that could negatively impact operations. A thoughtfully executed succession plan can help business owners to retire with confidence, knowing their company is in capable hands.
Establishing a Business with Long-Term Vision
One of the most important decisions a business owner can make is whether they are building their company for longevity or positioning it for sale. This fundamental choice can influence leadership development, financial planning, and operational strategy.
When a business is designed solely with an eventual sale in mind, decision-making tends to prioritize short-term gains over long-term stability. Cost-cutting may take precedence over investing in innovation, employee growth, and customer relationships. While this may enhance financial performance in the short term, it can leave the business fragile and ill-prepared for a smooth transition of ownership.
Conversely, a company built with the future in mind can be better positioned to withstand the challenges of leadership transitions. Owners who focus on long-term success tend to make strategic investments in their workforce, establish strong corporate values, and implement scalable systems that help ensure adaptability in a changing market. These efforts can not only help strengthen the business but also can enhance its appeal to potential successors, whether they are internal leaders or external buyers. Ultimately, businesses with a legacy-driven approach are better positioned to thrive across generations.
Key Components of a Successful Business Exit Strategy
Ultimately, a business owner will likely want to exit the business through a well-thought out plan. If the business is going to survive into the future, the business exit strategy should carefully examine all aspects of the transition. Here are a few key components:
Determine Exit Options – Whether transitioning to a family member, a trusted employee, or an external buyer, determining the best exit option is critical. This process should involve evaluating potential successors based on competency, leadership qualities, and alignment with the business’s long-term vision.
Financial Considerations – A successful business succession plan requires a thorough evaluation of both personal and business finances. Ensuring the company remains financially viable post-transition is essential, while also aligning the owner’s personal financial goals, such as retirement planning and wealth preservation, to secure long-term success.
Tax and Legal Considerations – Transferring ownership could come with complex tax and legal implications. A well-structured plan can help minimize tax liabilities and avoid potential legal pitfalls.
Leadership Transition – Preparing the next generation of leaders should include a structured transition period, during which the successor is trained and gradually assumes leadership responsibilities.
Contingency Planning – Unexpected events can arise, so having contingency plans in place helps the business continue operating smoothly under unforeseen circumstances.
The Role of a Wealth Management Firm in Business Succession Planning
Navigating the complexities of business succession planning often requires professional guidance. Partnering with a wealth management firm like Confluence Financial Partners can be invaluable in creating a smooth transition. Our team of financial professionals can assist with various aspects of the process, including:
Comprehensive Financial Planning – Guiding a business owner in determining a sale price that makes sense and allows them to reach their financial goals. A wealth manager can also assist in the owner’s financial life post sale by developing strategies to protect and grow wealth.
Working with Other Professionals – Collaborating with legal, tax, and financial experts to structure the transition in a way that minimizes tax burdens, maximizes financial efficiency, and helps ensure a seamless ownership transfer.
Investment Management – Developing a strategic investment plan to help business owners grow and protect their wealth, and helping to ensure financial security both before and after their exit.
Securing Your Legacy for Future Generations
Business succession planning is not a task to be postponed. Proactively creating a structured exit strategy can help enable a seamless transition, safeguard your company’s legacy, and provide financial security for both you and your successors. Working with a trusted wealth management firm can also simplify the process and help ensure that your business remains strong for generations to come.
If you are considering business succession planning, we encourage you to take the first step. Contact Confluence Financial Partners today to discuss crafting a customized succession planning strategy tailored to your unique business needs.
About the Author
At the core of his personal and professional life, Greg is passionate about helping individuals and families maximize their lives and legacies. His dedication to this mission shines through as an individual, wealth…
5 Key Steps to Help Ensure Your Financial Plan Informs Your Investments
by Randy Holcombe
CFP®, Wealth Manager
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Investing can be a powerful tool for building wealth and helping to secure financial stability, but to maximize its benefits, it should be aligned with your personal financial goals. A Financial Plan, supported by the professional guidance of a Wealth Management firm, such as Confluence Financial Partners, can help your portfolio reflect your long-term aspirations. Here are a few key steps to help make sure your financial plan drives your investing decisions.
1. Define Your Financial Goals
Before diving into investing or reassessing your current investments, it is best to establish clear financial objectives. Are you investing for retirement, a major purchase, or perhaps even leaving a legacy for your children? Whatever your objectives are, you should evaluate your existing investments to ensure they still align. A Certified Financial Planner (CFP) or Financial Advisor can help you set realistic, time-bound goals that serve as a foundation for your investment strategy.
2. Develop a Financial Plan
A well-crafted financial plan can serve as the foundation of a successful investment strategy. It starts with a clear understanding of your financial goals, risk tolerance, and time horizon. A comprehensive plan should incorporate key elements such as budgeting, debt management, savings, and insurance to establish a strong financial footing. It should also define both short-term and long-term objectives, providing a structured roadmap for building and preserving wealth. By thoroughly evaluating your current financial situation and anticipating future needs, a strategic plan can empower you to make informed investment decisions that support your overall financial well-being.
Confluence Financial Partners takes a holistic approach to financial planning and can help provide you with actionable steps to integrate the aspects of your financial life seamlessly. Rather than viewing investments in isolation, Confluence works to align them with cash flow management, tax strategies, estate planning, and risk mitigation to create a cohesive and strategic path toward your goals. This coordinated approach can help maximize wealth accumulation and long-term financial security, give you clarity and confidence in your decisions. With a well-defined plan in place, you can move forward with greater confidence that your financial future is built on a solid, strategic foundation.
3. Optimize for Tax Efficiency
An essential component of financial planning is optimizing for tax efficiency. Tax considerations can significantly impact investment returns, and working with a Certified Financial Planner (CFP) or Financial Advisor can help minimize tax burdens through strategies such as tax-loss harvesting, asset location planning, and retirement account maximization. By integrating these tax-efficient approaches, after-tax returns could increase and more of your wealth can be put to work toward your financial future.
4. Review, Monitor, and Adjust Your Investments Regularly
Beyond initial planning, continuous review and monitoring of investments can be critical to long-term success. As your life and goals change, your investment strategies should also adapt. Regularly assessing your portfolio in light of your plan can help it remain aligned with your financial objectives. Whether you’re starting fresh or reevaluating existing investments, partnering with a wealth management firm can provide professional oversight, helping to navigate market fluctuations and build a portfolio to help you live the life you want to live. With a proactive approach and professional guidance, you can more confidently pursue financial security and long-term prosperity.
5. Work with a Wealth Management Firm
Confluence Financial Partners is committed to a disciplined approach, guided by five key principles, to shape effective investing strategies. We manage investments to achieve individual client goals, not to beat arbitrary benchmarks. Our objective approach combines active and passive strategies, strategic planning, and tax-efficient solutions to help maximize returns and minimize long-term costs.
The Five Principles of Investing at Confluence Financial Partners
Objective-Based We believe clients are best served by focusing on how their investments serve their long-term goals rather than outperforming industry benchmarks.
Unbiased We take an unbiased approach in selecting investment types—active or passive—while maintaining transparency and prioritizing objectivity in the decision-making process for a sound investment strategy.
Strategic We use a balanced approach that combines strategic planning with carefully selected opportunities to align client investment portfolios with their specific goals.
Tax-Efficient For taxable accounts, we believe outcomes should be optimized not just for what the investments return, but for what the investments return after taxes.
Cost-Effective We believe optimizing the spend of client investment dollars on investment expenses is a key determinant of long-term success.
Confluence Financial Partners offers professional guidance in investment planning, risk management, and long-term financial strategy, providing clients with confidence and clarity in their financial journey. By leveraging the knowledge of experienced professionals, we can help develop a structured approach to investing that aligns with your financial aspirations and adapts to changing economic landscapes.
Final Thoughts
Investing is more than just buying securities—it’s about strategically growing your wealth in alignment with your personal financial goals. It’s about helping make sure that you aren’t just saving for saving’s sake, but rather you are building wealth while maximizing both your life and legacy. With the guidance of a Certified Financial Planner (CFP) or Financial Advisor, you will have someone to assist you with your investment decision as you work towards the life that you want. Working with Confluence Financial Partners provides access to our dedicated team that offers strategic insight, thoughtful guidance, and tailored solutions which can help turn your financial aspirations into reality.
About the Author
The opportunity to make a positive difference in people’s lives is why Randy chose a career in wealth management. He is passionate about helping his clients achieve their goals and cut through the…
After a positive start to 2025, equity markets were choppy in February following mixed economic data and increasing uncertainty.
In February, large cap stocks (S&P 500 TR Index) fell -1.30%, dragged slightly lower by large cap growth stocks (-3.59%, Russell 1000 Growth TR Index). Small cap stocks in the US also fell, with the Russell 2000 TR Index declining -5.35% in February.
Stock and bond markets were led by core bonds (+2.20%, Bloomberg US Aggregate Bond TR Index), developed international stocks (+1.94%, MSCI EAFE NR Index), and large cap value (+0.41%, Russell 1000 Value TR Index) during the month.
Broadening Participation in the Bull Market
With two months in the books, early in 2025 investors have seen signs of broadening participation in the bull market that started in October 2022. From an asset class lens, developed international stocks (MSCI EAFE NR Index) are off to a strong start this year, rising +7.30%, compared to +1.44% for the S&P 500 TR Index. Value stocks are also leading growth stocks in 2025, with the Russell 1000 Value TR Index rising +5.05% versus large cap growth (Russell 1000 Growth TR Index) falling -1.69%.
Early in the year, investors can also see a shift within the S&P 500 Index itself. After being responsible for over 50% of the calendar year returns in 2024, 2023, and 2022, the so-called “Magnificent 7” stocks are trailing the rest of the index. In 2025, the S&P 500 excluding the Magnificent 7 stocks is up +3.2% YTD, and the average stock in the index is up +2.87% (S&P 500 Equal Weight TR Index), ahead of the overall index. One reason for this shift is the trade-off between the high valuations of the Magnificent 7 and the leveling-off of their earnings growth.
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management. The top 10 S&P 500 companies are based on the 10 largest index constituents at the beginning of each quarter. As of 2/28/2025, the top 10 companies in the index were AAPL (7.2%), NVDA (6.1%), MSFT (5.9%), AMZN (3.9%), GOOGL/GOOG (3.6%), META (2.9%), BRK.B (1.9%), AVGO (1.8%), TSLA (1.6%), and JPM (1.5%). The remaining stocks represent the rest of the 492 companies in the S&P 500.
The largest companies in the S&P 500 are still expensive relative to their history at 27.3x forward earnings, even after seeing their valuations fall in 2025. Investors have started the year favoring opportunities with cheaper valuations, a trend that has helped diversified investors.
What’s on Deck for January?
As of February 28th, 97% of the S&P 500 had reported earnings for 4Q2024. Roughly 75% of the companies beat their earnings estimate and 63% exceeded their revenue estimates. Earnings growth for the quarter was a strong +18.2% year-over-year.
Investors will be watching for more certainty around the new trade policies being rolled out by the Trump administration.
About the Author
Bill has more than 12 years of experience in the investment industry, most recently as Managing Director of Investments at a private wealth management firm. In his role at Confluence, Bill chairs the…
Understanding the Role of a Registered Investment Advisor (RIA) and What It Means for You
by Gregory J. Weimer II
CFP®, CPA, President
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When it comes to financial planning and investment management, selecting the right advisor is one of the most critical decisions you can make. One term you may frequently encounter is “RIA,” which stands for Registered Investment Advisor. But what does that really mean, and why is it important for those seeking professional financial guidance?
Understanding an RIA
An RIA is a firm or individual registered with the Securities and Exchange Commission (SEC) or a state regulatory agency, depending on the assets under management. RIAs provide financial advice and investment management services while adhering to strict regulatory requirements designed to protect investors.
At Confluence Financial Partners, being a Registered Investment Advisory means that we are committed to transparency, personalized service, and, most importantly, acting in our clients’ best interests.
The Fiduciary Standard: Acting in Your Best Interest
One of the most significant distinctions of an RIA is the fiduciary duty it upholds. As fiduciaries, RIAs are legally and ethically required to prioritize their clients’ financial well-being above all else. This obligation includes:
Providing objective advice
Fully disclosing any potential conflicts of interest
Ensuring recommendations align with each client’s financial goals
At Confluence, our fiduciary responsibility guides financial strategies and tailors them to your unique situation, helping you pursue goals with confidence.
What to Expect When Working with a Registered Investment Advisor
Choosing to work with a Registered Investment Advisor like Confluence Financial Partners provides several opportunities:
Personalized Wealth Management: We take the time to understand your specific needs and aspirations, crafting customized financial plans and investment strategies.
Transparent Fee Structure: Our compensation model is designed to align with your success, with no hidden commissions or incentives.
Objective Advice: As fiduciaries, we are committed to offering independent, research-driven financial guidance that is in your best interest.
Regulatory Oversight: With strict SEC or state regulations in place, RIAs are held to high standards of accountability and client care.
What This Means for Confluence Clients
For clients of Confluence Financial Partners, our status as a Registered Investment Advisor represents a commitment: our commitment to act with integrity, to provide prudent guidance, and to help you achieve financial confidence. We embrace our fiduciary duty because we believe that trust is the foundation of every successful financial relationship. Whether you’re planning for retirement, growing your wealth, or navigating complex financial decisions, you deserve an advisor who is not only experienced but also required to put your best interests first.
Take the Next Step with an RIA You Can Trust
If you’re looking for a financial partner who prioritizes your goals and well-being, we invite you to start a conversation with Confluence Financial Partners. Let’s work together to build a strategy that aligns with your vision for the future.
About the Author
Gregory became interested in the financial services industry from an early age and quickly realized how investing and financial planning can have an impact on a person’s life. He strives to simplify the…
Markets started off 2025 on a positive note, led by a broader set of equity markets. For the month, developed international (MSCI EAFE NR USD) returned +5.26% and large cap value (Russell 1000 Value TR Index) returned +4.68%, leading all markets.
There were pockets of volatility during the month, caused by developments in artificial intelligence and changing trade policies.
Overall, diversified investors enjoyed January. Participation in the market broadened: the average stock (Equal-Weight S&P 500 TR Index) finished January +3.50%, ahead of market cap weighted index’s 2.78% return (S&P 500 TR Index). Large cap value finished +4.68% (Russell 1000 Value TR Index), ahead of large cap growth’s +1.98% return (Russell 1000 Growth TR Index).
Stocks are Rarely Average
Last year marked the second consecutive year the S&P 500 returned over 25%, making it only the fifth time since 1926 that the index has produced consecutive results of that magnitude. While there have been positive developments in 2025, the fact still remains that the S&P 500 is very concentrated in the top 10 companies, which have pushed the S&P 500’s valuation to above-average levels. How should investors think about this data?
History is a great starting point, with over 100 years of various market conditions, recessions, and geopolitical headlines. History shows that stocks typically have “better-than-average” and “great” years in clusters, much like the S&P 500 has experienced recently. Since 1926, the S&P 500 has averaged 10.4% per year; during that period, it has only posted calendar year returns around the average (8% to 12%) in 6 years. This shows that over longer periods, fundamentals drive stock prices, not year-to-year price fluctuations- the benefit of being a long-term investor.
In addition to understanding historical trends, investors should recognize the broadening out in the current bull market. In January, the S&P 500’s Technology sector was the only sector to fall during the month; the average stock also finished ahead of the index. Investors should view developments such as these favorably as the current bull market continues ahead.
Source: Morningstar as of 12/31/24. U.S. stocks are represented by the S&P 500 Index from 3/4/57 to 12/31/24 and the IA SBBI U.S. Lrg Stock Tr USD Index from 1/1/26 to 3/4/57, unmanaged indexes that are generally considered representative of the U.S. stock market during each given time period.
What’s on Deck for February?
Earnings season for the fourth quarter of 2024 will continue. As of February 2nd, 32% of S&P 500 companies have reported, with 74% beating earnings estimates and 62% beating revenue estimates.
The new Administration will continue to roll-out new policies, in addition to Congress working on budget and tax legislation.
William Winkeler
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