The number of investment advisors registered with the Securities and Exchange Commission increased by 3.6% last year, while the number of state-registered advisors decreased by 2%, according to the North American Securities Administrators Association. Most state-registered advisors are small practices, with more than 75% having two or fewer employees, and some intentionally keep assets under $100 million to avoid SEC registration.

Second-quarter data from the Federal Reserve shows US household net worth totaling $176.3 trillion, a record high driven by a soaring stock market and rising property prices. Household wealth rose by more than $7 trillion, primarily because stock market holdings' value rose by $5.5 trillion, while real estate values rose by $1.2 trillion, according to Fed data.

Goldman Sachs reports that 26% of family offices intend to increase private credit exposure within the next year, pushing average allocations up to 4% from 3% in 2023, while the share with no exposure has fallen from 36% to 26%. The report highlights private credit's growing role as a core component of sophisticated portfolios, reflecting a broader trend among ultra-high-net-worth investors to diversify beyond traditional equities and bonds.

Investors are embracing the "run it hot" trade, betting on economic resurgence driven by tax cuts and falling interest rates. This optimism has pushed stocks, bitcoin, and gold to record highs, with the Dow Jones Industrial Average surpassing 46,000. Investors are optimistic about the near-term outlook, despite concerns about slowing job growth and tariffs.

Many older Americans hold a higher percentage of stocks in their portfolios than they prefer, according to the Center for Retirement Research, but many financial advisers say this higher stock allocation is beneficial, given rising living expenses and life expectancy. While investors aged 50 to 78 would like to allocate 37% of their portfolios to stocks, actual allocations range from 43% to 48%, driven by default options in 401(k) plans such as target date funds.

Members of Generation X, the oldest of which are nearing age 60, are increasingly worried about their financial preparedness for retirement, with 54% believing they won't be ready to leave the workforce, according to Northwestern Mutual. Gen Xers anticipate needing $1.57 million to retire comfortably, significantly more than the national average. Many are concerned about outliving their savings and the reliability of Social Security, and 48% plan to work during their retirement years.

US Securities and Exchange Commission Chair Paul Atkins has signaled a more collaborative regulatory approach, pledging businesses will get notice of technical violations before facing penalties. The move marks a sharp break from Gary Gensler's aggressive enforcement era under President Biden, with Atkins focusing enforcement on fraud while advancing the White House's crypto-friendly agenda. He also outlined plans to craft rules for tokenized securities and smart contracts.

Federal revenue has seen a significant boost from a sharp increase in capital gains reported by taxpayers for tax year 2024. According to new IRS data, net capital gains surged to $530 billion, a 65% jump from the previous year. This spike is largely attributed to strong stock market performance, with much of the gains concentrated among high-income households.

Financial advisors are advising high-net-worth clients on strategies to mitigate the "SALT torpedo" -- the sharp increase in marginal tax rates due to the phaseout of the state and local tax deduction under the recently passed tax and spending bill. Advisors recommend postponing income events, timing Roth conversions during low-income years, using qualified charitable distributions from IRAs and leveraging deferred compensation plans.