The Federal Reserve announced another quarter-point interest-rate reduction at the end of its meeting this week, although it signaled that it may pause in the future. "We're well positioned to wait and see how the economy evolves from here," Fed Chair Jerome Powell said. The meeting showed an unusual amount of division, with three officials dissenting from the decision.

Investors reacted to the Federal Reserve's interest-rate cut on Wednesday, with the Dow Jones Industrial Average gaining around 1% for the day. Meanwhile, the S&P 500 was up 0.7%, nearing a record close, and the Nasdaq composite increased 0.3%.

The employment cost index was up 0.8% in the third quarter, according to the Bureau of Labor Statistics, below the estimate of 0.9% in a Reuters survey of economists. Costs gained 3.5% in the 12 months through September, the report shows.

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In some cases, people seeking answers to estate planning questions may use AI tools, but this can backfire, with the technology sometimes delivering answers with imprecise language or outdated facts, write attorneys Joy Matak and Martin Shenkman. "AI may not have access to the numerous journals, professional publications, and papers from top institutes, where cutting-edge and novel planning and new developments are routinely addressed," they note.

The Great Wealth Transfer is already taking place, but many people have not taken steps to prepare estate plans, writes Domenick D'Andrea of DanDarah Wealth Management. "As the great wealth transfer continues to unfold, it has become clear that financial advice cannot be limited to investments or retirement alone," D'Andrea writes. "Families need holistic guidance that weaves together financial planning, estate planning and long-term security."

Now that digital assets are playing a larger role in client portfolios, estate planning must also address them. Building awareness is a crucial first step, says Jamie Hopkins, chief wealth officer at Bryn Mawr Trust. "In most of the surveys that are out there around this topic, clients and Americans are totally unaware that digital estate planning is even a concept," Hopkins says.

The end of the year is a good time to evaluate the structure of your team, review your practice's use of technology and make succession planning a priority, writes Beverly Flaxington of The Collaborative.

Older clients may benefit from the $6,000 for qualifying seniors that was included in the tax and spending legislation passed over the summer. Eligibility depends on income, with deductions phasing out over certain income levels.

Focusing on the long term can help financial professionals and clients make savvy planning decisions in the wake of the tax and spending legislation that was passed over the summer, says Ed Slott of Ed Slott & Co. "Also, avoid focusing on reducing taxes for this year at the expense of lifetime tax savings," Slott says. "Plan for life and beyond, not just for this year."