Investing

Several areas in the U.S. are vulnerable to extreme weather hazards, according to a data analysis by Harvard researchers.
However, exposed rental units are concentrated in two particular states.

Jodi Jacobson | E+ | Getty Images

More than 18 million rental units are located in areas exposed to extreme weather hazards, according to the American Rental Housing Report from Harvard University’s Joint Center for Housing Studies.
That exposure isn’t spread evenly. While most states have at least one “high-risk” county with 2,000 or more rental units, many are concentrated in California and Florida.

Harvard researchers paired data from the Federal Emergency Management Agency’s National Risk Index with the five-year American Community Survey to find out what units are in the areas that are expected to have an annual economic loss from environmental disasters such as wildfires, flooding, earthquakes, hurricanes and more.
A high-risk area is one with a “relatively moderate,” “relatively high” or “very high” expected annual loss.

“What the map is showing is the number of rental units that are located in areas that have at least moderate risk,” said Sophia Wedeen, a research analyst focused on rental housing, residential remodeling and affordability at the Joint Center for Housing Studies.

How many rentals are at risk in California and Florida

Harvard researchers found the number of rental units exposed to climate hazards in the U.S. by combining an area’s risk of economic loss from natural disasters with the number of rental units in those areas, Wedeen said.
Florida, for example, has many rental units as well as census tracts, or neighborhoods, that FEMA identified as having at least moderate risk, Wedeen said. The state appears as a hot spot as a result. The same applies for areas in California.

More from Personal Finance:What tenants should know to make rent improve creditThree ways Gen Zers can boost credit before renting’Housing affordability is reshaping migration trends’
California has 4.6 million rental units, or 77% of the state’s rental stock, located in census tracts or neighborhoods that are estimated to face annual economic losses through climate-related hazards.
Florida has 2.4 million rental units at risk, or about 89% of its rental stock, according to the Harvard study.

How renters can protect themselves

As more areas in the U.S. become further exposed to climate-related risks, it will be important for renters to consider renters insurance and understand what such policies cover, experts say.
To that point, landlords and building owners are responsible for any physical damage to the building or unit caused by natural disasters. But their property insurance does not cover a tenant’s personal belongings.
Renters insurance policies usually cover losses or damages to a tenant’s personal property and some even cover living expenses if a tenant needs temporary housing during a unit’s repair.
Renters should check what type of disasters are included in their renters insurance policy. They may need riders or a separate policy to cover risks such as flooding or earthquakes, experts say.

Additionally, renters may want to shop around for insurance plans before signing a lease in an at-risk area. Homeowners in some areas are struggling to find coverage as major insurers leave some markets exposed to fires and floods.
“The best thing that renters can do is make sure what types of products are available to protect their property but then also … understand risk,” said Jeremy Porter, head of climate implications research for First Street Foundation.
Renters should understand the climate risks of buildings they live in and make informed decisions, Porter explained.Don’t miss these stories from CNBC PRO: More

Smart Tax Planning

The IRS has issued more than 2.6 million refunds worth roughly $3.65 billion, the agency announced on Friday.
As of Feb. 2, the average refund is $1,395, down about 29% compared to one year prior.
However, the first filing season statistics for 2024 are only based on five days of data compared to 12 days in 2023, according to the IRS.

Artistgndphotography | E+ | Getty Images

With tax season in full swing, the IRS has issued more than 2.6 million refunds worth about $3.65 billion, as of Feb. 2, the agency reported last week.
So far, the average refund is $1,395, compared with $1,963 one year ago, which is roughly 29% smaller.

However, since the 2024 tax season kicked off on Jan. 29, the average refund is only based on five days, compared with 12 days from one year ago, the IRS noted Friday, saying the early statistics suggest a “strong start to filing season 2024.”

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

“It really is very preliminary data,” said Mark Steber, chief tax information officer at Jackson Hewitt. “I caution anyone on reading too much into an entire year, or a tax season of 3½ months, on five days worth of data.”
Last year, the average refund for the 2023 filing season was $3,167, as of Dec. 29, according to the IRS.
A lot of people who typically file early — such as earned income tax recipients and child tax credit recipients — still haven’t filed, Steber said.
By law, filers claiming the refundable portion of the child tax credit or earned income tax credit won’t get refunds until Feb. 27 at the earliest, the IRS says.

Why some tax refunds could be bigger

Typically, you can expect a refund when you overpay taxes throughout the year. Many workers automatically send money via paycheck withholdings. By comparison, you may owe money if you didn’t pay enough last year.
“We’re still seeing bigger refunds coming,” Steber said, partially due to higher inflation.  
If your income didn’t keep pace with inflation in 2023, you could see a larger refund this season due to IRS inflation adjustments, he said, such as higher federal tax brackets, the standard deduction and more.
“We fully expect refunds to be healthy,” Steber added.

‘Don’t wait on Congress’ to file

There’s pending tax legislation in Congress that could provide a retroactive boost for the child tax credit for 2023, which could increase refunds for certain eligible filers.
But if taxpayers are prepared to file, they shouldn’t wait, according to the IRS.
“We urge and encourage taxpayers to file when they’re ready,” IRS Commissioner Danny Werfel told reporters in January during a press call. “Don’t wait on Congress.”
However, nearly half of taxpayers don’t plan to file until March or later, citing complexity and stress as the top reasons for delaying, according to a January survey from IPX1031, an investment property exchange service. More

More than 3.7 million borrowers have gotten their student debt forgiven while President Joe Biden is in office, and more relief is expected.
Here’s what borrowers should know.

US President Joe Biden arrives to board Air Force One at Joint Base Andrews in Maryland, on August 15, 2023.
Andrew Caballero-Reynolds | AFP | Getty Images

It’s never been a better time to get rid of your student debt.
Although President Joe Biden’s plans to cancel up to $400 billion in student debt for tens of millions of Americans were foiled over the summer at the Supreme Court, his administration has explored all of its existing authority to leave people with less education debt.

As a result, more than 3.7 million Americans have received loan cancellation during Biden’s time in office, totaling $136.6 billion in aid.
In a recent exclusive interview with CNBC, Rep. James Clyburn, D-S.C., who has been a vocal advocate for student loan borrowers, said he’s heard from the U.S. Department of Education that every two months over the next four years, another 75,000 people will be eligible to have their debt forgiven due to changes in income-driven repayment plans and Public Service Loan Forgiveness.
Here’s what borrowers should know about those programs and other aid options.

Income-driven repayment plans

Income-driven repayment plans, which date to 1994, allow student loan borrowers to pay a share of their discretionary income toward their debt each month, and to get any remaining debt forgiven after a set period. There are four different plans.
Yet many borrowers paid into the system for years without getting that promised cancellation, said higher education expert Mark Kantrowitz.

“The loan servicers weren’t keeping track of the number of qualifying payments,” Kantrowitz said in a former CNBC interview.
More from Personal Finance:’Loud budgeting’ is having a momentGen Z, millennials want to invest — but many aren’tAmericans can’t pay an unexpected $1,000 expense
The Biden administration has been evaluating millions of borrowers’ loan accounts to see if they should have had their debt forgiven. So far, more than 930,000 people have benefited, receiving over $45 billion in debt cancelation.
Most people with federal student loans qualify for income-driven repayment plans, and can review the options and apply at Studentaid.gov.
Recently, the Education Department also announced it would soon cancel the debts of those who’ve been in repayment for a decade or more and originally took out $12,000 or less. To qualify, borrowers need to be enrolled in the administration’s new Saving on a Valuable Education, or SAVE, plan.

Public Service Loan Forgiveness

Navigating the Public Service Loan Forgiveness program has been famously difficult. 
The program, signed into law by former President George W. Bush in 2007, allows employees of the government and certain not-for-profit entities to have their federal student loans discharged after 10 years of on-time payments.
The Consumer Financial Protection Bureau in 2013 estimated that one-quarter of American workers may be eligible.
However, after getting wrong information from their servicers about the program’s requirements, millions of borrowers hit walls. People frequently found that some or all of their qualifying payments didn’t count because they had a loan or were enrolled in a payment plan not covered under the initiative.

Paul Morigi | Getty Images

The Biden administration has tried to reverse the trend of borrowers being excluded from the relief on technicalities. It has broadened eligibility and allowed people to reapply for the relief, as long as they were working in the public sector and paying down their debt.
Some 790,000 public servants have gotten their debt erased as a result, amounting to more than $56 billion in relief.
With the PSLF help tool, borrowers can also search for a list of qualifying employers under the program and access the employer certification form. They can also learn about all the program’s requirements at Studentaid.gov.

Total and Permanent Disability Discharge

The Biden administration has also forgiven the student debt of more than 510,000 disabled borrowers. The $11.7 billion in aid was delivered under the Total and Permanent Disability Discharge.
The Department of Education has gotten better at identifying borrowers who are disabled and in need of this relief by accessing information from the Social Security Administration, Kantrowitz said.
Borrowers may qualify for a TPD discharge if they suffer from a mental or physical disability that is severe, permanent and prevents them from working. Proof of the disability can come from a doctor, the Social Security Administration or the Department of Veterans Affairs.

Borrower defense

Another 1.3 million borrowers have walked away from their debt over the past few years thanks to the Borrower Defense Loan Discharge. These people received $22.5 billion in relief.
Borrowers can be eligible for the discharge if their schools suddenly closed or they were cheated by their colleges.
The Biden administration has more swiftly processed these applications and has started considering cases in a group rather than requiring each attendee of a school to prove they were misled.

“Borrowers who were affected by similar circumstances should have their loans discharged as a group,” Kantrowitz said.
Those who think they might qualify can apply with the Education Department.

‘Plan B’ for forgiveness still possible

The Biden administration is also working to revise its broad forgiveness plan to make it legally viable.
To do so, it has sought to narrow the aid by focusing on certain groups, including those with balances greater than what they originally borrowed and students from schools of questionable quality. Borrowers experiencing “financial hardship” may also get loan cancellation, although it’s unclear how this category will be defined.
The president may try to deliver that relief before November.
“The election is still a long ways away, and there are signs that the Biden administration has been ramping up its debt relief program,” said Noah Rosenblum, an assistant professor of law at New York University.
That alternative plan, which has become known as Biden’s “Plan B,” could forgive the student debt for as many as 10 million people, according to one estimate.
Don’t miss these stories from CNBC PRO: More

Black founders of startup companies in the U.S. raised less than half of 1% of all venture dollars allocated, the lowest amount in two years.
Startups seeking funding have faced significant headwinds as higher interest rates have made risky investments less attractive.
Still, some entrepreneurs are rising to the challenge and building on the momentum generated a few years ago.

Startup aimed at solving dating problem

Naza Shelley, an attorney who lives in Washington, D.C., was frustrated using dating apps that she says were not focused on professional Black women — so she built her own. In 2018, she founded CarpeDM, a dating service app that adds a personal touch with a dedicated human matchmaker. Costs range between $300 and $1,800 a year, depending on services and the subscription length.
To initially start her business, she sold her condo, drained her savings and raised money from friends and family.  
The startup received its largest investment in 2022 from Portland, Oregon-based Elevate Capital, a venture capital fund that invests in underrepresented entrepreneurs, which includes women, Blacks, Latinos, other people of color, LGBTQ+ communities or those with limited regional access to capital. 

Couples at a dating event for CarpeDM members at the HQ DC club in Washington, D.C.
Stephanie Dhue

“That kind of gave us a pathway to getting our initial capital, which was just so critical because dating apps really have to have funding in order to really get off the ground in a successful way,” Shelley said. 
That sizeable capital flow provided more money for marketing, investments in technology and hiring matchmakers. Increasing paid customers and building on relationships with investors have helped the company raise additional funds and gain access to valuable advisors.
“I love the category, it truly brings happiness to people when they can find great matches,” said Steve Kaufer, the founder and former CEO of TripAdvisor, who recently invested in CarpeDM. “When I can find investments where I feel that my experience can add value, those generally become my favorite ones.”

What to consider when investing in a startup

Addressing racial and gender-based wealth inequality in investment advice prompted Jason Ray to start his own wealth management firm in 2019. 
“We find that folks who have ambitious goals and want to achieve a better financial future don’t have access to high-quality advice,” said Ray, president and chief investment officer at Zenith Wealth Partners in Philadelphia. 
Many of the firm’s clients are interested in investing in early-stage companies to mitigate stock market volatility and potentially increase overall returns. 
Most startup founders initially obtain funding from friends and family. Once a startup begins to solicit funds, funders must be accredited investors. Individuals can generally become accredited with $200,000 annual earned income or $300,000 for married couples. Individuals or couples can also qualify with a total net worth of at least $1 million, not including the value of their primary residence.

If clients want to invest, Ray says it is important to understand the risk — the investment will be “illiquid,” meaning you cannot access that money for many years. You also may never make a profit. According to Harvard Business Review, two-thirds of startups never show a positive return. 
To evaluate whether to invest in a startup, Ray says investors should know how the company operates and its competitive advantage. They should evaluate the management team and its track record, and most importantly, understand the terms of the investment.
“If the valuation on the company is too high, and you as an investor are not getting enough rights, or ownership or control or whatever it may be, that may not be the right deal for you,” said Ray. 

‘We’re just gonna keep climbing’

Even as startup funding has slowed, Elevate Capital plans to launch a new venture fund in the next few months, expanding its support of diverse entrepreneurs in new regions. 
“Just like mountain goats, we’re just gonna keep climbing and we’re gonna just keep doing it,” said Nitin Rai, founder and managing partner of Elevate Capital.   
Meanwhile, Ray believes that just like the stock market, early-stage investing also will have its ups and downs. Still, he says, “the graph certainly seems like it’s up and to the right, and people are gonna continue to invest in and support businesses run by Black people and people of color.”
SIGN UP: Join the free virtual CNBC’s Women & Wealth event on March 5 at 1 p.m. ET, where we’ll bring together top financial experts to help you build a better playbook, offer practical strategies to increase income, identify profitable investment opportunities and save for the future to set yourself up for a stronger 2024 and beyond.Don’t miss these stories from CNBC PRO: More

Americans are steadily falling deeper into credit card debt.
There are some tried-and-true payoff strategies that can help, experts say.
Here are the best ways to jump-start debt repayment.

Credit cards are an Achilles’ heel for many people.
Collectively, Americans now owe $1.13 trillion on their cards, and the average balance per consumer is up to $6,360, both historic highs.

Not only are more cardholders carrying debt from month to month but more are increasingly falling behind on payments, recent reports show.

“Even though dealing with $1 trillion in credit card debt can be overwhelming, the reality is that this figure is expected to ascend,” said Tomas Philipson, a professor of public policy studies at the University of Chicago and former acting chair of the White House Council of Economic Advisers.
“Americans are still contending with lingering inflation and the ongoing rise in interest rates, which forces them to depend more heavily on credit cards,” Philipson said.
More from Personal Finance:Average credit card balances jump 10% to a record $6,360Credit card debt hits a ‘staggering’ $1.13 trillionAmericans can’t pay an unexpected $1,000 expense
Already, credit cards are one of the most expensive ways to borrow money. The average credit card charges a record high 20.74%, according to Bankrate.

But there are proven pay-off strategies that work, experts also say. Here is their best advice for tackling that high-interest debt once and for all, including one analyst’s “favorite tip.”

2 ways to jump-start debt repayment

1. Try a 0% balance transfer credit card
“My favorite tip is to sign up for a 0% balance transfer credit card,” said Ted Rossman, senior industry analyst at Bankrate.
Cards offering 12, 15 or even 21 months with no interest on transferred balances are out there, he added, and “these allow you to consolidate your high-cost debt onto a new card that won’t charge interest for up to 21 months, in some cases.”
Those offers are “just about the best tool you have against credit card debt,” added Matt Schulz, chief credit analyst at LendingTree.

To make the most of a balance transfer, aggressively pay down the balance during the introductory period. Otherwise, the remaining balance will have a new annual percentage rate applied to it, which is about 24.6%, on average, in line with the rates for new credit, according to Schulz.
Further, there can be limits on how much you can transfer, as well as fees attached.
Most cards have a one-time balance transfer fee, which is usually around 3% of the tab, but “it’s becoming more common to find cards charging 4% or 5% as a balance transfer fee, which is something people should be aware of,” Schulz said.
Borrowers may also be able to refinance into a lower-interest personal loan. Those rates have climbed recently, as well, but at just under 12%, on average, are still well below the current credit card average.
Otherwise, ask your card issuer for a lower annual percentage rate. In fact, 76% of people who asked for a lower interest rate on their credit card in the past year got one, according to a LendingTree report.
2. Pick a repayment strategy
There are two ways you could approach repayment: prioritize the highest-interest debt or pay off your debt from smallest to largest balance. Those strategies are known as the avalanche method and the snowball method, respectively. Using either can help consumers pay off debt as much as 100 months sooner, according to a separate analysis by LendingTree.
The avalanche method has you list your debts from highest to lowest by interest rate. That way, you start paying off the debts that rack up the most in interest first. The snowball method prioritizes your smallest debts first, regardless of interest rate, to help gain momentum as the debts are paid off.
With either strategy, you’ll make the minimum payments each month on all your debts and put any extra cash toward accelerating repayment on one debt of your choice.
“If I were to pick one for myself, I would probably go with avalanche because the math works out the best,” Schulz said, “but ultimately, it really doesn’t matter — it’s about picking the one that’s going to be the most motivating to you and the one you are most likely to stick with.”
Subscribe to CNBC on YouTube. More

Family members provide about two-thirds of the care needed by elders, but at some point, the family members may not be able to handle the load.
Finding good caregivers is the hardest part of delivering care in the home.
If a patient plans to go the route of hiring a private caregiver, the first task is to write a clear job description of the expected duties, hours, pay, and benefits.

Momo Productions | Digitalvision | Getty Images

Caregiving needs for our aging population are booming. Most older people want to age in place, but this is wishful thinking without planning for the logistics of how care will be provided.
Finding good caregivers is the hardest part of delivering care in the home.

Family members provide about two-thirds of the care needed by elders, but at some point, the family members may not be able to handle the load. The family either must use a home health agency or hire private caregivers to provide additional assistance.

How to decide: Agency or private caregivers?

Managing care at home is similar to running a small business.
The family is the employer. The caregivers are employees. For your caregiving “business” to function well, the employees must be given a job description and schedule, managed appropriately, and provided paychecks. The employer must manage the payroll, tax filings, and potential liability such as workman’s compensation insurance and the risk of being sued by employees.

More from CNBC’s Advisor Council

The beauty of hiring an agency is that they take care of all these small business functions.
So, what is the downside?

They may not provide all the services that are needed, and there can be high turnover of caregivers. The agency is paying the employees and taking on the cost of running a business, plus they also want to make a profit. The caregivers usually make about half of what the patient pays the agency.
Hiring private caregivers takes time, effort, and organization, but can lead to both higher patient and caregiver satisfaction. If a patient wants excellent, dedicated caregivers, they should expect to pay the caregivers higher wages than an agency would provide.

How to hire a private caregiver

If a patient plans to go the route of hiring a private caregiver, the first task is to write a clear job description of the expected duties, hours, pay, and benefits.
Caregiving needs vary widely, from just providing companionship all the way to patient transfers, toileting, and bathing. Putting these expectations in the job posting will attract the appropriate applicants. It is helpful to have a home health agency or an aging life care manager assess the situation to help the family clarify the needed services. They can also suggest necessary equipment needed to provide the care safely.

The family should utilize an accountant or payroll service to manage payroll, tax filings, and tax payments. They should also discuss the situation with their insurance agent to put the appropriate liability coverage in place. Good accounting and insurance costs money, but it can prevent a load of problems for both the family and the caregivers.

Managing the small business of caregiving

In addition to having a clear job description, providing daily checklists sets expectations for both the patient and caregiver. Finally, having formal check-ins every couple of months to ensure expectations are being met on both sides can reduce the chance that small problems do not escalate into larger issues.
No matter how care is provided, it is hard work. Setting expectations and creating good processes take time and the reward of providing good care for a loved one is well worth the effort.
— By Carolyn McClanahan, a physician and certified financial planner, and the founder of Life Planning Partners in Jacksonville, Florida. She is a member of the CNBC Financial Advisor Council. More

Over two thousand attendees are descending on the Fontainebleau Hotel in Miami Beach for the annual Exchange ETF conference. To entice participants, the organizers rented out the entire LIV Nightclub Miami at the hotel for a Super Bowl party Sunday night.
While much of the conference is an excuse to party among the ETF industry reps and the Registered Investment Advisors  (RIAs) that are the main attendees, the industry needs a lot of advice.

The Good news: still lots of money coming in, but the industry is maturing
The ETF juggernaut continues to rake in money, now with north of $8 trillion in assets under management.  Indexing/passive investing, the main impetus behind ETFs 30 years ago, continues to bring in new adherents as smarter investors, including the younger ones that have begun investing since the pandemic, come to understand the difficulty of outperforming the market.
The bad news is much of the easy money has already been made as the industry is now reaching middle aged. Just about every type of index fund that can be thought of is already in existence. 
To grow, the ETF industry has to expand the offerings of active management and devise new ways to entice investors.  
Actively managed strategies did well in 2023, accounting for about a quarter of all inflows.  Covered call strategies like the JPMorgan Equity Premium Income ETF (JEPI), which offered protection during a downturn, raked in money.  But with the broad markets hitting new highs, it’s not clear if investors will continue to pour money into covered call strategies that, by definition, underperform in rising markets.

Fortunately, the industry has proven very skilled at capturing whatever investing zeitgeist is in the air.  That can range from the silly (pot ETFs when there was no real pot industry) to ideas that have had some real staying power.
Six or seven years ago, it was thematic tech ETFs like cybersecurity or electric vehicles that pulled in investors. 
The big topics in 2024:  Bitcoin, AI, Magnificent 7 alternatives
In 2024, the industry is betting that the new crop of bitcoin ETFs will pull in billions.  Bitcoin for grandma?  We’ll see.
Besides bitcoin, the big topics here in Miami Beach are 1) A.I/ and what it’s going to do for financial advisors and investors, and 2) how to get clients to think about equity allocation beyond the Magnificent 7.
Notably absent is China investing.
Bitcoin for grandma?  Financial advisors are divided on whether to jump in
Ten spot bitcoin ETFs have successfully launched.  The heads of three of those, Matt Hougan, chief investment officer at Bitwise, Steve Kurz, global head of asset management at Galaxy and David LaValle, global head of ETFs at Grayscale, will lead a panel offering advice to financial advisors, who seem divided on how to proceed.
Ric Edelman, the founder of Edelman Financial Engines, the #1 RIA in the country and currently the head of the Digital Assets Council of Financial Professionals (DACFP), will also be present. 
Edelman has long been a bitcoin bull. He recently estimates bitcoin’s price will reach $150,000 within two years (about three times its current price), and has estimated that Independent RIAs, who collectively manage $8 trillion, could invest 2.5% of their assets under management in crypto in the next two to three years, which would translate into over $154 billion.
Inflows into bitcoin ETFs to date have been modest, but bitcoin ETFs are being viewed by some advisors as the first true bridge between traditional finance and the crypto community. 
But many advisors are torn about recommending them, not just because of the large number of competing products, but because of the legal minefields that still exist around bitcoin, specifically around SEC Chair Gary Gensler’s warning that any financial advisor recommending bitcoin would have to be mindful of “suitability” requirements for clients.
For many, those suitability requirements, along with the high volatility, continuing charges of manipulation, and the doubt about bitcoin as a true asset class will be enough to keep them away. 
The bitcoin ecosystem is in going into overdrive to convince the RIA community otherwise.
 Artificial intelligence: What can it do for the investing community?
Thematic tech investing (cybersecurity, robotics, cloud computing, electric vehicles, social media, etc.) has waxed and waned in the last decade, but there is no doubt Artificial Intelligence ETFs (IRBT, ROBT, BOTZ)  has recaptured some interest.  The problem is defining what an AI investment looks like and which companies are exposed to AI.
But the impact is already being felt by the financial advisory community.
Jason Pereira, senior partner & financial Planner, Woodgate Financial, is speaking on how financial advisors are using artificial intelligence.  There are amazing AI tools that financial advisors can now use.  Pereira describes how it is now possible to generate financial podcasts with just snippets of your own voice.  Just plug in a text, and it can generate a whole podcast without ever saying the actual words.  How to generate text?  In theory, you could go to Chat GPT and say, for example, “Write 500 words about current issues in 401(k)s,” and rewrite it slightly for a specific audience.
In a world where a million people can now generate a podcast on financial advice, how do you maintain value?  Much of the lower skilled tasks (data analysis) will quickly become commodified, but Pereira believes a very big difference will quickly emerge between volume and quality.
Equity Allocation Beyond the Magnificent Seven
Financial advisors are beset by clients urging them to throw money at the Magnificent 7.  Roundhill’s new Magnificent 7 ETF (MAGS) has pulled in big money in the last few months, now north of $100 million in assets under management.
Since the end of last year, there have been enormous inflows into technology ETFs (Apple, Microsoft, NVIDIA), and modest inflows into communications (Meta and Alphabet) and consumer discretionary (Amazon).  Most everything else has languished, with particular outflows in energy, health care, and materials. 
Advisors are eager for advice on how to talk to clients about the concentration risks involved in investing solely in big-cap tech and how to allocate for the long haul. 
Alex Zweber, managing director investment strategy at Parametric and Eric Veiel, head of global investments and CIO at T. Rowe Price are leading a panel on alternative approaches that have had some success recently, including ETFs that invest in option overlays, but also on quality and momentum investing in general, which overlaps but is broader than simply investing in the Magnificent 7.
Stop talking about numbers and returns and start offering “human-centric” advice
Talk to any financial advisor for more than a few minutes, and they will likely tell you how difficult it is dealing with some clients who are convinced they should put all their money into NVIDIA, or Bolivian tin mines, or who have investing ADHD and want to throw all their money in one investment one day, then pull it out the next.
Brian Portnoy and Neil Bage, co-founders of Shaping Wealth, are leading one of the early panels on how financial advisors can move away from an emphasis on numbers and more toward engaging with their clients on a more personal and emotional level.
Sounds touchy-feely, but competition for clients has become intense, and there is a new field emerging on how to provide financial advice that is less centered on numbers (assets under management, fees, quarterly statements), and more centered on developing the investor’s understanding of behavioral finance and emotional intelligence. 
Under this style of investment advice, often called “human-centric” or “human-first” advice, more time may be spent discussing behavioral biases that lead to investing mistakes than on stock market minutiae. This may help the clients develop behaviors that, for example, are better suited to longer term investing (less trading, less market timing).  
Advocates of this approach believe this is a much better way to engage and keep clients for the long term.
What’s missing? China
For years, a panel on international investing, and specifically emerging markets/China investing, was a staple at ETF conferences.
Not anymore.  Notably absent is any discussion of international investing, but particularly China, where political risk is now perceived to be so high that investors are fleeing China and China ETFs. 
Indeed, investing “ex-China” is a bit of a thing.
The iShares Emerging Markets ex-China ETF (EMXC) launched with little fanfare in 2017 and had almost no assets under management for several years.  That changed in late 2022, when China ETFs began a long slow descent, and inflows exploded into EMXC from investors who still wanted emerging market exposure, just not to China. More

People typically pay between $75,000 and $500,000 for Barbie Adler’s matchmaker services.
Adler has identified 225 key indicators, including family values, politics and religion, to determine lasting compatibility.
“When people come to see us, they’ve never learned how to date,” Adler said. “Their picker is just broken.”

Colin Anderson Productions Pty Ltd | Digitalvision | Getty Images

Money can’t buy love. But a lot of it can get you matchmaker Barbie Adler.
Adler, founder of the elite matchmaking company Selective Search, boasts that 1 in 3 of her clients fall for the first person they’re paired with.

“It’s really quick,” Adler said.
That figure is unthinkable for most people on the dating apps, where it’s known to be a numbers game, and even so, years can pass without any luck.
People typically pay between $75,000 and $500,000 for Adler’s services (and in some cases, even more), according to business records reviewed by CNBC. Her team of matchmakers conducts in-person interviews with clients, which delve into their childhoods, desires, aversions and romantic histories. Adler has identified 225 key indicators, including family values, politics and religion, to determine lasting compatibility.
“When people come to see us, they’ve never learned how to date,” she said. “Their picker is just broken.”

Barbie Adler
Courtesy: Barbie Adler

She said her service was “not for the masses,” but that for the wealthy, it was well worth it.

“Nothing is bigger or more important than who you’re going to be with for the rest of your life,” she explained.
What about for everyone else out there trying to find love? Adler shared her best dating advice.

Take time to reflect

Before people even begin to seriously date, they should take time to reflect on themselves and what they want, Adler said, “Silence your world, and put together a game plan.”
To start, she suggests asking yourself these two questions:

Am I the partner I want to be for someone else?
What do I need to do to work on myself to attract the kind of person I’m looking for?

You might conclude that you need to exercise more and eat healthier, or address a longstanding anger issue, Adler said. Some will realize they need to be more giving in relationships. Think about the problems previous partners, or those you’ve been dating, brought up to you. “Listen and don’t be defensive,” Adler said.
“Be humble and ask how you can be a better version of yourself,” she added. “Someone who has worked on themselves is really attractive.”
More from Personal Finance:Money talks should happen before the relationship gets serious3 financial tips for couples moving in togetherMany young unmarried couples don’t split costs equally
Once you’ve taken an inventory of yourself, you should then think deeply about what kind of partner you’re looking for, Adler said: “Put a list together of what you need. Get clarity about physical traits, value systems, lifestyle and family planning.”
As part of this reflection, it can be useful to think about why previous relationships didn’t work out, Adler said. There may be a pattern you need to break.
“We keep our clients from repeating the same patterns,” Adler said. “People will say, ‘I don’t want the same wounded bird anymore. I want a partner now.'”

Don’t settle

Adler’s matchmakers dedicate a lot of time helping clients to identify their deal breakers and their must-have qualities in a partner. As hard as it is, you don’t want to negotiate on these things, Adler said.
“You have to make sure you guys want the same things out of life,” she said. “If someone wants to spent their time in the arts, and someone else likes to spend their time on the slopes — that’s two very different lifestyles.”

It is most important not to compromise on the big topics, Adler said.
“If you want to have kids, why would you waste your time with someone that’s a ‘maybe’ on kids? Or think that you could change their mind?” she said.
“Settling is the quickest way to have a divorce attorney in your phone,” she added. “I think that you should uphold your standards.” More