June 27, 2025

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WEEKLY TOUCHPOINT

When it comes to hiring a financial professional, titles can be confusing—Financial Advisor, Investment Advisor, Broker, Wealth Manager. The question remains, aren’t they all the same? Not quite. Each one comes with a slightly different focus and regulatory framework. Here’s a quick breakdown to help you cut through the noise:

• Financial Advisor – This is the broadest and most commonly used title. It can refer to professionals offering anything from investment help to insurance, retirement, or overall financial planning. But be aware: it’s a generic title, so scope and standards vary. Also, many professionals using this title are referred to as hybrid professionals, meaning they can charge commissions and fees.
• Investment Advisor – This role is more specific. Registered Investment Advisors (RIAs) or their representatives provide investment advice for a fee and are legally bound by a fiduciary duty to act in your best interest. This job function is normally reserved for professionals who strictly manage money in order to meet a specific goal.
• Broker – Often referred to as a “registered representative,” a broker executes trades and may offer investment recommendations. They typically earn commissions and are held to a suitability standard—meaning their recommendations must be appropriate, but not necessarily the best option for you.
• Wealth Manager – Think of this as a more holistic, high-touch role. Wealth managers often serve clients with more complex needs, offering comprehensive services like tax strategies, estate strategies, business succession guidance and human capital improvement practices—often paired with investment management.

One of the first questions that often arises from a client’s perspective: how am I charged and what are the main differences? Advisors may be compensated in one of two ways—or sometimes both (as noted above):

• Fee-based advisors charge a percentage of assets under management, a flat fee, or hourly rate. This model typically aligns interests with clients and is common among fiduciaries.
• Commission-based advisors earn money when products are bought or sold (like insurance or mutual funds), which may create conflicts of interest if not carefully disclosed.

One of the current norms in the financial services industry is for advisors to charge an annual fee on money assets that are being managed and to receive commissions for sales of insurance products and solutions. But evolution is happening in the insurance sector as well, where advisors can now charge a fee on products such as variable annuities, rather than earn a commission.

Before choosing who to trust with your financial life, it’s essential to look beyond the title and understand how your advisor is compensated, what standards they follow, and what services they truly provide. The fine print matters—because when it comes to your goals, you deserve clarity, alignment, and a relationship built on trust. If you’re ever unsure, ask the questions that matter—we’re always here to give you straight answers.

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NEWS

• Experts Issue Urgent Warning After Massive AT&T Data Leak Resurfaces

• Oil Prices Spike as Israel-Iran Conflict Threatens Production

• How Attractive Is Private Equity?

• Is Social Security taxable?

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Wealth Mechanics™

Common Annuity Products

Annuities can be complicated, but the truth of the matter is that annuities are tools that can serve a valuable purpose when applied purposefully. To have a holistic discussion, we believe it’s important to begin with education. The Common Annuity Products summary guide offers you an unbiased overview of annuities and covers:

• The kinds of annuities available.
• How specific annuities work and for whom they may be most suitable.
• The risks that each kind of annuity carries and can help mitigate.
• The features and possible fees associated with each kind of annuity.
• How annuities may affect your tax and estate planning situation.

I encourage you to spend a little time with this summary guide. If questions arise, we are here to help.

Common Annuity Products

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MARKET COMMENTARY

Equities

• Stocks rallied as Middle East tensions cooled and optimism over trade/economic policy lifted markets.

• The S&P 500 and Nasdaq hit fresh record highs; small- and mid-caps joined the ride but lagged large-caps slightly.

• Growth stocks outshined value, narrowing their year-to-date performance gap.

• Tech and communication services led sector gains; energy stocks slid as oil dropped to $65/barrel.

• Global markets followed suit—developed and emerging markets rallied on ceasefire relief.

Bonds

• Yields dropped across the board, giving fixed income investors a reason to smile.

• The 2-year Treasury yield slid 17bps to 3.73%, while the 10-year yield dropped 9bps to 4.29%.

• The spread between 2s and 10s widened to 0.56%, with long-duration bonds outperforming.

• High-yield bonds led performance, with yields tightening to 7.41%.

• Investment-grade corporates also improved, with yields down to 5.06%.

Macroeconomic Data

• Inflation showed up modestly—Core PCE rose 0.2%, just a hair above expectations.

• Income and spending both dipped in May, down 0.4% and 0.1%, respectively.

• Consumer spirits got a lift—Michigan Sentiment jumped 16% as tariff fears cooled.

• Q1 GDP was revised slightly lower to -0.5%, signaling a softer start to the year.

• Durable goods orders beat forecasts, though gains were muted without transportation.

 

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INDEX RETURNS

(as of Monday’s Market Opening)

	Total Return (1D)	Total Return (1W)	Total Return (MTD)	Total Return (QTD)	Total Return (YTD)
S&P 500	-0.22%	1.62%	-0.22%	-0.22%	5.26%
Dow Jones Industrial Average	0.65%	3.00%	0.65%	0.65%	4.32%
NASDAQ	-0.91%	1.37%	-0.91%	-0.91%	4.52%
NASDAQ 100	-0.77%	1.41%	-0.77%	-0.77%	7.10%
Russell 1000	0.54%	3.00%	5.06%	11.09%	6.11%
Russell 2000	-0.10%	0.54%	-0.10%	-0.10%	-2.57%
Russell 3000	-0.19%	2.63%	4.89%	10.59%	5.36%
ACWI	-0.24%	2.75%	4.55%	11.07%	10.02%

Source: MorningStar

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ANNUITY WATCH

FIXED ACCOUNT		FIXED ACCOUNT
(premium greater $100K)		(premium  less than $100K)
5.5%		4.25%

Source: Jackson Financial

 

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Global Client Survey

We’re inviting you to take part in a quick ananymous client survey. Your feedback helps us fine-tune our process, elevate your experience, and ensure we’re delivering what matters most to you. This isn’t just about checking a box—it’s about shaping the future of how we serve you. Your voice helps guide our next steps. We’re listening. We’re learning. And we’re grateful for your trust.

 

Take Our Survey Now (click here)

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Disclosures

1. Wealth Mechanics™ is a registered trademark of Cestia Wealth Management. Unauthorized use of the trademark, including but not limited to commercial use, reproduction, or imitation without explicit written permission from Cestia Wealth Management, is strictly prohibited.
2. Market commentary provided by NewEdge Advisors
3. Charts concerning market data are provided by Exhibit A.
4. Guides and other downloadable firm material respective to financial planning processes and data are provided and powered by fpPathfinder.
5. Advisory services offered through NewEdge Advisors, LLC, a registered investment adviser. Securities offered through NewEdge Securities, LLC. Member FINRA/SIPC. NewEdge Advisors, LLC and NewEdge Securities, LLC are wholly owned subsidiaries of NewEdge Capital Group, LLC.
6. Cestia Wealth Management is not a legal tax professional. We offer tax gap analysis for clients who desire to have a comprehensive financial plan, which requires in-depth tax strategy and planning as a distinct part of the overall customized solution. Please consult your tax professional on all matters addressed in this report.
7. Information about annuities are not to be considered a recommendation. The information provided should not considered a recommendation to purchase or sell any particular security.
8. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary. Therefore, the information presented here should only be relied upon when coordinated with individual professional advice.