Spring 2026: Managing Client Assets Through Periods of Uncertainty

Welcome to the latest edition of Fiduciary Focus, Towerpoint Wealth’s newsletter created specifically for professional fiduciaries.

As fiduciaries ourselves, we understand the responsibility that comes with managing client assets through changing market environments. Periods of geopolitical tension, shifting interest rate policy, election cycles, and broader economic uncertainty can introduce new questions and concerns not only for clients, but for the fiduciaries entrusted with guiding them.

In moments like these, it’s easy to move focus from longer-term strategy to shorter-term movement. This edition of Fiduciary Focus is designed to help fiduciaries navigate those conversations and decisions thoughtfully — managing client concerns while remaining in line with the underlying plan.

Periods of uncertainty are when structure matters most. Maintaining discipline, staying grounded in a well-constructed strategy, and making measured decisions continues to be the foundation of dutiful fiduciary management.

We hope you find this newsletter both informative and empowering as you continue to uphold the highest standards of fiduciary care.

Managing Client Assets Through Periods of Uncertainty

Periods of market volatility are a natural part of investing. Markets move in response to changing economic conditions, interest rate policy, geopolitical events, and broader uncertainty.

While these shifts are expected, the way they are experienced (particularly by clients) is not always predictable.

For fiduciaries, volatility often shows up as both a portfolio issue and a communication and decision-making challenge. Clients may feel uneasy, question whether changes are needed, or look for reassurance that their plan is still on track. This can create pressure to respond, even when the underlying strategy remains solid.

That pressure is compounded by a very natural instinct and desire to “do something.” When markets are unsettled, both clients and fiduciaries can feel that action is necessary to regain a sense of control.

However, in many cases, reactive decisions can introduce more risk than they remove. Selling assets during a downturn can lock in losses, adjusting allocations prematurely can disrupt longer-term positioning, and unplanned changes can create avoidable tax consequences.

A well-structured investment plan is built with these environments in mind:

• Diversification is designed to help manage risk across asset classes.
• Tax-aware strategies aim to minimize unnecessary tax impact over time.
• Thoughtful cash flow and liquidity planning ensure that distributions can be met without forcing unfavorable portfolio decisions.

When markets feel uncomfortable, it does not necessarily mean something is wrong. In many cases, it means the plan is functioning exactly as intended: absorbing volatility rather than avoiding it.

Where a Fiduciary’s Attention Should Be Focused

Periods of uncertainty require fiduciaries to maintain careful oversight of distributions, liquidity, and tax considerations while continuing to act in the best interest of their clients. This means focus should be on:

• Distributions: Ensuring client needs are met in a tax-efficient and timely manner
• Liquidity: Maintaining sufficient cash to avoid selling longer-term assets at inopportune times
• Rebalancing: Making targeted adjustments to keep portfolios in line with their intended allocations
• Tax Considerations: Evaluating opportunities and risks related to realized gains and losses

These are measured decisions where the timing of a distribution, the source of funds, and the tax impact of each decision all carry weight, especially when markets are unsettled.

This is where having structured advisory support becomes particularly valuable. At Towerpoint Wealth, our Fiduciary Group brings over 27 years of combined experience working alongside professional fiduciaries.

We provide a second layer of review and coordination across investment management, tax considerations, and distribution planning — supporting the day-to-day decisions that directly impact client outcomes.

Our role is to help fiduciaries make informed, well-coordinated decisions that align with each client’s broader plan. With a clear understanding of fiduciary responsibilities and the standards that govern them, we work to ensure that investment strategy, tax considerations, and distribution needs are addressed with the precision and consistency that your clients expect.

Tax-Loss Harvesting in Volatile Markets

Periods of market volatility can present opportunities to improve after-tax outcomes through tax-loss harvesting. This strategy involves selling investments at a loss to offset realized capital gains elsewhere in a client’s portfolio. If losses exceed gains, up to $3,000 can be applied against ordinary income each year, with any remaining losses carried forward to future tax years.

Volatile or down markets tend to create more frequent opportunities to realize losses. When approached thoughtfully, these periods allow fiduciaries to reposition portfolios while capturing tax value that can reduce current or future tax liability.

For fiduciaries, tax-loss harvesting requires careful coordination. Considerations to keep in mind include:

• Planning with the client’s broader tax picture: Consider losses alongside realized gains, income levels, and future tax expectations
• Maintaining portfolio integrity: Ensure replacement investments preserve the intended asset allocation and risk profile
• Observing wash sale rules: Avoid repurchasing substantially identical securities within 30 days to ensure losses remain deductible
• Timing and documentation: Execute transactions thoughtfully and maintain clear records for reporting and compliance

When applied within a carefully structured framework, tax-loss harvesting can allow fiduciaries to make productive use of market declines while continuing to manage client assets with the precision and consistency required.

“The stock market is a device for transferring money from the impatient to the patient.” — Warren Buffett

Periods of market volatility can test patience more than strategy. When clients feel uncertainty, it creates a strong instinct to act, but longer-term outcomes are often shaped by the ability to stay disciplined through shorter-term fluctuations.

For fiduciaries, maintaining that perspective, and helping clients do the same, is a key part of protecting and growing client assets over time.

Towerpoint Wealth’s Fiduciary Group Updates

Dinner Experience: May 28, 2026

Join us for an evening at Mulvaney’s in Sacramento following the PFAC Annual Conference. This curated dinner experience is designed to bring fiduciaries together in a more relaxed, intimate setting to continue conversations and connect with peers.

Date: May 28, 2026
Time: 6:00 – 9:00 PM
Location: Mulvaney’s, 1215 19th St, Sacramento, CA

Dinner will be provided. RSVP to events@towerpointwealth.com by May 14th.

We look forward to gathering together! These evenings offer a great opportunity to connect and spend time with others in the fiduciary community.