At Foster & Motley, we believe technology can support good advice, but it can’t replace experience, judgment, and trusted relationships. Which makes it more important than ever to acknowledge that, as information about AI, market volatility, and tax laws evolves, thoughtful financial advice matters.
Whether navigating uncertain markets or revisiting long-term estate plans, we remain focused on helping clients stay grounded, adaptable, and prepared for what’s ahead.
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Hello, I’m Zach Horn. This is the May edition of Beyond the Headlines
If you would have told me a few years ago that I'd be using AI to help plan family vacations or check my kids’ homework, I would've laughed. But it's become part of my daily life, and I'm guessing it’s had the same effect on some of you.
Naturally, one of the AI-related questions we’re hearing at Foster & Motley is, “How will AI impact financial advice?”
For anyone who thinks human advice is on its way out, a recent survey found that less than a third of wealth management clients trust AI as much as they trust their advisor. For a business built on trust, that’s a steep hill for any technology trying to replace relationships.
That said, just like I use AI as a tool in my toolkit, we see advisors using AI to support their work, not replace it.
While AI is efficient at some daily tasks, it can’t sit with you through the emotional rollercoaster of an unexpected life event, get to know your family, or make a judgment call when the right answer isn't obvious.
That’s why we've spent so much time building a team of people who aren’t just experts in wealth management, but who also understand the emotions behind the big financial decisions in your life.
Let me give you an example of where that kind of human judgment really matters. You may have seen the news recently that for the first time since World War II, U.S. public debt is now larger than our GDP – Gross Domestic Prodcut. Some projections have that ratio continuing to climb.
I get why this kind of headline makes people uneasy. This is the kind of news that pushes people to do something they may regret later, like selling into the next market dip, moving to cash, and waiting on the sidelines until the noise clears.
These types of decisions, when driven by short-term reactions, can work against long-term goals.
The way you protect yourself against a headline like this is to already own a portfolio that accounts for it. Diversification across asset classes, with real exposure outside the United States, and built for decades instead of for what's around the corner. Markets have absorbed wars, recessions, debt crises, and even a global pandemic, and they've continued to compound returns through it all. That's the long-term math we're interested in.
Another example of avoiding big decisions based on headlines came up recently around estate planning.
Back in 2024, many wealthy families were contemplating significant asset transfers to kids because the estate tax exemption was set to be cut in half. Then last summer, the One Big Beautiful Bill Act passed, and the exemption was permanently increased to $15 million per person. Tax law changes like these can have a huge impact on legacy decisions.
The lesson worth taking from this is that legacy planning isn't a one-time event. We've watched everything change over the years, from tax laws to family situations to what our clients want their wealth to do. That's why we treat estate plans as living documents. We revisit them regularly, keeping an eye on what’s happening today while accounting for what could change in the future. That's how good planning works.
Before I wrap up, a quick update on the Foster & Motley team.
We've added several new team members this year, and we're currently hiring for two more roles — a Chief Compliance Officer for a seamless transition from a valued team member who is retiring, and an Associate Financial Planner to add even more support for financial planning work that we do for clients. We're not trying to be the biggest firm. We're trying to be the right firm for you, and that means bringing in great people who value relationships as much as technical knowledge.
If anything we covered today brought up a question for you, give us a call. That’s what we’re here for.