Manning & Napier (MN) Investor Update summary

Key planning priorities for 2025

• Reviewing and stress testing financial plans is a top priority for many, especially after strong market years and in light of potential legislative changes.

• Regularly updating passwords, beneficiary designations, and required minimum distributions are essential annual tasks.

• Organizing for tax season early and scheduling annual reviews with advisors help ensure financial strategies remain aligned with goals.

• Asset allocation can drift over time, especially after strong equity performance, making periodic reviews crucial to manage risk.

• Estate plan reviews and considering trusts or beneficiary updates are recommended as personal and legislative circumstances evolve.

Market and economic outlook

• U.S. stocks have delivered back-to-back years of 20%+ returns, but elevated valuations and sentiment suggest potential for increased volatility.

• The new administration brings policy uncertainty, with optimism in business sentiment but also risks from tariffs and immigration changes.

• Diversification remains important, as leadership in markets can shift unexpectedly, and overexposure to recent winners increases risk.

• Higher government borrowing and longer-duration bonds could pressure long-term rates, potentially constraining future policy responses.

• Inflation is expected to remain structurally higher than in the 2000s/2010s, with few deflationary forces on the horizon.

Tax and legislative considerations

• The Tax Cuts and Jobs Act provisions are set to sunset at the end of 2025, with uncertainty around extensions or changes.

• Flexibility and proactive planning are advised, as retroactive or partial legislative changes are possible.

• Estate tax exemption could drop by half if current laws sunset, making it important for high-net-worth individuals to review plans.

• Strategies such as Roth conversions, charitable giving, and catch-up contributions should be considered in light of current and potential future tax laws.