Data & Research March 18, 2025

Americans Want Support With Tax-Smart Strategies

More than half of those aged at least 55do not understand strategies to make their retirement income more tax efficient, according to an Edelman Financial Engines survey.

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Half of Americans feel they lack the knowledge and advice to minimize their tax burden and grow wealth using tax-smart strategies for long-term financial planning, according to a recent Edelman Financial Engines survey. Additionally, more than half (53%) of those aged at least 55 do not understand strategies to make their retirement income more tax efficient.

The survey found much opportunity for year-round support with tax planning, as nearly half (44%) of respondents only think about taxes during filing season. The areas in which people reported being most likely to seek assistance included retirement planning (45%), tax preparation (41%) and building tax-efficient portfolios (41%).

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However, those who do receive help are more familiar with tax-smart strategies, especially estate planning and Roth conversions (higher by 13 and 8 percentage points, respectively). They also reported being more proactive with year-round tax planning (18 percentage points greater) and felt more confident in tax efficiency (10 percentage points greater).

The survey highlights a growing need for professional tax planning assistance, as it emphasized that taxes play a crucial role in broader financial decisions—such as managing investments, retirement planning and wealth transfer—on which retirement plan advisers can work with clients to improve their confidence and achieve their financial goals.

“Taxes can be daunting and difficult for many people to manage on their own, yet they’re such an integral part of the broader financial planning process, which goes far beyond filing a tax return each year,” said Amin Dabit, Edelman’s head of wealth planning, in a statement. “Taxes are connected to so many different money decisions, such as building and managing an investment portfolio, drawing down assets in retirement, and transferring wealth to family and creating a legacy. How we think about taxes in these situations can translate to significant dollars lost or gained over a lifetime. Our research shows that people want support in these areas to help increase their confidence and achieve their long-term goals.”

How much do people disklike tax planning? The survey found it comparable to spending a week at their in-laws and only slightly better than going to the DMV.

The Markets March 18, 2025

Financial Advisers Hone In on Private Infrastructure Investments

Private equity remains the largest private markets investment by far, according to a Hamilton Lane survey.

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Financial advisers plan to bolster their allocations to private markets in 2025, with an eye on private infrastructure, according to survey results released by investment manager Hamilton Lane Inc.

“As we look ahead, we expect interest in the infrastructure space to continue to grow,” Steve Brennan, Hamilton Lane’s head of private wealth solutions, said in a statement.

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Approximately 56% of advisers polled said they plan to increase their allocation to private markets in 2025, while 42% said they will maintain their holdings in the asset class, with only 2% saying they plan to reduce their allocation this year.

Among the advisers who said they expect to add to their private markets investments, 48% said they are targeting infrastructure, 45% said they will up their private equity holdings, and 39% reported seeking to increase their holdings in private assets. Additionally, some 76% of all respondents said their clients see private markets as providing a higher reward than stocks and bonds due both to private markets’ performance and the diversification they can bring to client portfolios.

Although private infrastructure is the subsector in which advisers are most interested this year, private equity still dominates the asset class. Venture capital is the only subsector owned by a smaller percentage of advisers than infrastructure. According to the survey, advisers said that among private market investments, 94% of their clients are invested in private equity, 85% own private credit holdings, 64% have or are invested in private real estate, 54% own secondaries, 51% own infrastructure holdings, and 36% are invested in venture capital.

The survey also found that 30% of respondents anticipate allocating at least one-fifth of their entire investment portfolio to private assets, while 29% said they expect to allocate at least 10%. According to Hamilton Lane, the 59% of advisers looking to earmark at least one-tenth of their portfolio to private assets is a 15% increase from last year. The firm’s report detailing the survey results noted that the increase “marks a notable shift in comfort with the asset class,” as well as growing interest among individual investors.”

“This year, our survey results showed a growing enthusiasm around and appreciation for the diversification and performance benefits the private markets can provide,” Brennan said in the report. “Just a few years ago, we would never have expected to see nearly 60% of advisors planning to allocate 10% or more of clients’ portfolios to this asset class in the coming year.”

When broken down into age groups, according to the Hamilton Lane report, Generation X investors have the highest interest in private markets exposure at 94%, followed by 89% for Millennials, 77% for Baby Boomers, and 59% for investors age 75 or older.

The online survey of 320 respondents representing private wealth firms, registered investment advisers and family offices, as well as other adviser professionals, was conducted from October 29 through December 4, 2024.

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