Investments: Rate Cuts
After much anticipation, the Federal Reserve cut interest rates last Wednesday by 0.25% and projected that two more cuts could come later this year. Chairman Jerome Powell cited a weakening labor market—partly due to the sudden halt in immigration—as justification for the move. This cut comes after a period of strong market gains and rising corporate profits. With profits soaring, companies have had little incentive to reduce their workforce, resulting in a historically low firing rate. However, ongoing trade and tariff uncertainty has led many businesses to stall their hiring efforts. For now, the Fed has made it clear that employment risks take priority over further progress on inflation. How long it maintains this stance remains to be seen, as multiple rate cuts paired with the incoming stimulus from adjusted tax burdens under the OBBBA (One Big Beautiful Bill Act) in early 2026 could push inflation higher, further complicating matters for the Fed.
Planning: Per Stirpes or Per Capita?
When it comes to estate planning, one detail often overlooked is making sure your beneficiaries are set on your investment accounts. These forms take priority over your will, so making sure they are up-to-date helps ensure your estate wishes are carried out. With a per stirpes beneficiary layout, assets flow down the family line to your children and grandchildren if a beneficiary passes away, helping each branch of the family receive its share. With per capita, assets are divided equally among surviving beneficiaries at the same level, allowing for more control over who inherits. A quick review of your designations can give you peace of mind and make sure your legacy reflects your intentions.
