Welcome to the Summer 2025 edition of Towerpoint Wealth’s Fiduciary Group Newsletter, Fiduciary Focus!
As fiduciaries ourselves, we understand the weight of responsibility that comes with protecting and managing client assets. Through every market turn, legislative change, or policy shift, your clients look to you for clarity, discipline, and sound financial oversight.
We’re here to provide you with fresh insights and practical tools to help you diligently navigate Trust Administration, Special Needs Planning, Conservatorships, and Estate Administration.
At Towerpoint Wealth, our fiduciary group supports professional private fiduciaries, third-party trustees, conservators, administrators, and family stewards with the same standard of care we uphold in our own work. With 27 years of combined experience and a commitment to the Uniform Prudent Investor Act and the California Probate Code, we’re here to offer guidance grounded in trust, transparency, and strategy.
As we enter the second half of the year, this edition focuses on timely developments—including the market reaction to new tariffs, core principles of tax-efficient investing, and insights to support you in managing complexity with confidence.
We hope you find this newsletter both informative and empowering as you continue to uphold the highest standards of fiduciary care.
Navigating Market Volatility in a New Tariff Era
President Trump’s April 2025 announcement of sweeping new tariffs triggered an immediate response from the markets, with the S&P 500 falling more than 10% in two days.
While volatility is nothing new to seasoned fiduciaries, this recent episode serves as a timely reminder: policy shifts can disrupt asset values in ways that demand swift but thoughtful portfolio oversight.
For fiduciaries managing client investment accounts — trusts, conservatorships, or special needs portfolios — the key is preparation, not prediction. The uncertain path of trade policy over the coming months underscores the importance of holding well-diversified portfolios with strong defensive positions.
At Towerpoint Wealth, we’ve seen high-quality fixed income perform its role well, offering stability and liquidity during equity drawdowns. Fiduciaries managing distributions or liquidity-sensitive accounts can rely on these allocations to meet cash needs without selling equities at depressed prices.
This is where your discipline matters most. Staying invested, rebalancing as needed, and avoiding emotional shifts in strategy helps protect the long-term integrity of the portfolio — something your clients are counting on.
Have questions about how current market volatility is impacting the portfolios you manage?
Our Fiduciary Group is here to support you with customized guidance and portfolio insights tailored to your clients’ needs.
Tax Tip: 5 Strategies to Enhance Portfolio Efficiency for Your Clients
Taxes are one of the few investment “risks” that fiduciaries can proactively plan for.
Whether you’re managing a special needs trust, conservatorship, or private client portfolio, a tax-efficient investment approach directly contributes to preserving long-term wealth. Here are five key principles to help fiduciaries make the most of every dollar under their care:
1. Use Tax-Advantaged Accounts Wisely
Align asset type and tax treatment. If your client’s estate includes IRAs, Roths, or retirement plans, review how different account structures impact current vs. future tax exposure.
Tax-deferred accounts, such as Traditional IRAs, 401(k)s, 403(b)s, and 457s, let you contribute pre-tax dollars, reducing your current taxable income. Investments within these accounts grow tax-deferred.
Tax-free accounts, like Roth IRAs and Roth 401(k)s, are funded with after-tax dollars, but they allow for tax-free growth and withdrawals in retirement. These accounts can be particularly beneficial for high earners who expect to be in a higher tax bracket later in life.
2. Optimize Asset Location
Minimize tax drag across accounts. For investors with both tax-deferred and taxable accounts, placing high-income producing investments in tax-advantaged accounts and low-income producing investments in taxable accounts can help you to further optimize your portfolio’s tax efficiency.
This can also help fiduciaries maintain a cleaner after-tax return for their clients, especially when managing portfolios with annual distribution needs.
3. Harvest Losses Thoughtfully
During periods of volatility (like this year’s tariff-driven selloff), tax-loss harvesting can offset gains elsewhere, which can be particularly useful when managing large taxable accounts or liquidations within trusts.
4. Plan Withdrawals Strategically
Fiduciaries managing retirement withdrawals or trust distributions can significantly reduce tax impacts by considering a thoughtful withdrawal order: first draw from taxable accounts like regular brokerage accounts, then tax-deferred accounts (Traditional IRAs, 401ks, etc), then any Roth accounts. Planning now can prevent inefficiencies later.
5. Avoid Surprise Capital Gains
Review mutual funds held in taxable accounts. Year-end distributions can surprise clients with a tax bill — even without a sale. Using ETFs or tax-managed funds gives fiduciaries more control over when gains are realized.
At Towerpoint Wealth, we’re happy to collaborate with you to review client portfolios through a tax-aware lens or provide guidance on structuring long-term investment strategies.
“Stick to your investment strategy—do not turn temporary declines into permanent losses.”
— Warren Buffett
A timeless reminder, especially for fiduciaries entrusted with managing others’ wealth. Amid short-term headlines and market noise, your ability to stay focused on the long view is one of your greatest assets.
Towerpoint Wealth’s Fiduciary Group Updates
Announcing Our Brand New Website
We’re excited to share that the Towerpoint Wealth website has a fresh new look! Redesigned with you in mind, the updated site makes it easier to explore our services, access helpful resources, and stay connected with our Fiduciary Group.
We can’t wait for you to take a look.
Concerned About a Recession?
If your clients are asking about the economy or expressing concern about the impact of a potential recession on their portfolios, our recent blog post may be a valuable resource.
We break down the current economic environment, clarify what a recession really means, and share five strategies that fiduciaries can use to help protect and position client portfolios — even during uncertain times.
