Wealth transfer from baby boomers to younger generations presents an opportunity for advisors to bridge the financial confidence gap, writes Philip Caminiti of New York Life. Generation X faces pressures from supporting parents and children while lacking formal financial plans. Millennials are disciplined savers but struggle with debt and retirement confidence. Generation Z is cautious and relies on digital advice. Advisors can build trust by understanding these generational differences and offering tailored guidance, Caminiti writes.

The Financial Industry Regulatory Authority has extended the deadline to Feb. 12 for the Securities and Exchange Commission to approve a proposal to increase the annual gift limit for registered persons to $300 from $100. The Financial Services Institute had recommended that FINRA increase the annual limit to $500 to account for inflation.

The Federal Reserve announced a 25-basis-point interest rate cut in a sharply divided vote, with multiple policymakers dissenting and others signaling resistance to further easing. Officials' projections now show a likely pause in future cuts amid persistent inflation and lack of clear economic data, underscoring a split between those focused on labor market weakness and others wary of easing too far. The discord highlights uncertainty about the policy path ahead as the central bank balances its dual mandate and navigates an upcoming leadership transition.

Wealth management firms are accelerating their adoption of AI tools, from notetakers to workflow automation, but many are discovering that their data infrastructure isn't equipped to support these capabilities. The rapid rollout has revealed widespread data fragmentation and silos that limit the effectiveness of more advanced AI applications. Industry consultants warn that without foundational data modernization, firms risk adding complexity rather than efficiency.

Retirees who play it too safe with their investments risk outliving their savings, according to experts. They recommend diversifying portfolios and considering strategies such as the bucket approach to balance safety with growth. "Anytime you're keeping dry powder for some future event, it's a big red flag," says Jamie Hopkins, CEO of Bryn Mawr Trust Advisors.