Beyond the Market
By John Lau, CPA, CFP® Retirement Income Architecture™ Why Diversification and Coordination Matter More Than Ever September 2026 It is hard to believe that we are already at the beginning of September. As we head into the final four months of the year, I thought this would be a good time not only to look […]
PPLI: The Current Hot Topic for the Ultra-Wealthy
The Wall Street Journal recently spotlighted Private Placement Life Insurance (PPLI), describing it as a “Roth IRA on steroids” for wealthy Americans seeking tax-free growth. While the headline captures the imagination, PPLI is not a loophole or an aggressive tax shelter. In the eyes of the tax code, it is a variable universal life (VUL) insurance contract designed for Qualified Purchasers and Accredited Investors. It replaces the high-commission, off-the-shelf retail product with an institutionally priced, insurance wrapper that can invest in almost any asset class but is primarily used for tax-inefficient alternative assets.
AI Momentum Meets Rate Hike Risk
Last week, stock prices were up and bond prices were down (yields up). The MSCI Emerging Markets and MSCI EAFE indices outperformed the S&P 500. The best-performing sectors in the S&P 500 were energy, utilities, and consumer staples. Across U.S. Russell style and market-cap indices, mid-cap growth performed best, but the value factor led more broadly.
As for fixed income, the 10-year Treasury yield was up to 4.69% over the week, and the 2s/10s Treasury yield spread steepened to +52 bps. High-yield bond spreads were nearly flat at 265 bps and still remain well below the 2025 high of 453 bps.