Skip to main content

Insights by Cathay

Phil Hurst Weighs in on the 2023 Outlook

Senior Vice President, Director of Wealth Management & Premier Banking, Phil Hurst, poses for a professional headshot.
Phil Hurst

Further advancements in the fintech market have expanded the accessibility of private wealth management products and services to a broader range of individuals and families. Thus, the market has witnessed significant progress, enabling a wider segment of people and families to access a more comprehensive range of private wealth management products and services.

The aftermath of the pandemic has prompted many individuals to prioritize financial management and estate planning, recognizing the need to be prepared for future crises. To gain a comprehensive understanding of the latest trends, recommended practices, and concerns prevalent in the wealth management landscape, Phil Hurst participated in the L.A. Times panel to discuss his perspective and insights for 2023.

You may view the complete article here.


Q: How would you describe the current investment environment in 2023 and what do you consider to be the best investment approach, in general terms?

Today’s investment environment is a bit like a tug-of-war between inflation expectations and the Fed’s response. The Fed would like to see inflation settle at the 2% to 3% range but its actions to help make that happen cause the economy to slow and put it at risk. We have to hope for a soft landing but nine out of 10 times that doesn’t happen. Based on all this, caution is the keyword when it comes to the best investment approach.


Q: What should parents consider when determining how to involve their children in intergenerational wealth-planning discussions? What kind of information is good to share and at what age?

It’s important to involve kids in wealth planning discussions so they can appreciate the efforts being made to ensure family wealth is maintained when it passes to them, especially since historically a lot of wealth is lost during that transition. They should be made aware of the hard work involved to amass the wealth and understand the plans being put in place for their benefit. As for when that should happen, that really depends on the parents’ assessment of their kids’ capability, i.e., their level of maturity.


Q: How can clients protect their assets from threats such as creditors and bankruptcy and/or future estate taxes after their death?

An Irrevocable Life Insurance Trust owns insurance on an individual’s life, removing the insurance proceeds from the insured’s estate for estate tax purposes. A Crummey Trust, also an irrevocable trust, allows an individual to make gifts to the trust and qualify them for the annual gift tax exclusion. These are simple ways to shelter funds from estate taxes that can accomplish those objectives.


Q: What tools, products and processes can assist advisors in helping clients be more tax efficient while growing wealth and still maintaining cash flow needs?

Financial planning is an important tool to help clients get to their desired outcome, and tax mitigation strategies should be part of every plan. A healthy portfolio might include tax-deferred products, tax-free income, trusts, real estate and oil and gas investments – things that receive favorable tax treatment.


Q: As a trusted advisor, what advice can you share for longer-term portfolio asset allocation?

It’s very important to be cognizant of the changes and evolutions clients go through during the different cycles of their lives. Starting to save at a young age is ideal for having the best chance to grow wealth, and during those years when retirement seems so far away, it’s certainly appropriate to be more aggressive with investments. When clients are older, they need to ease off the gas a bit, perhaps turning to dividend-yielding, more conservative investments. Since people are living longer than ever, it’s important to maintain some level of growth but employ a philosophy focused on de-risking to ensure their portfolio covers their needs for the rest of their life.


Q: What keeps your clients up at night in 2023?

I think people are waking up to the damage inflation can do to our collective lives. They are wondering what the long-term effects of high inflation would do to their ability to maintain their current lifestyle. For instance, if inflation remains at 5% for the next 10 years, they would have lost half their buying power by 2033. This is why the Fed’s inflation strategies are so important. Everyone is affected.



Related Links:

This article does not constitute legal, accounting, or other professional advice. Although the information contained herein is intended to be accurate, Cathay Bank does not assume liability for loss or damage due to reliance on such information.

* Wealth management services does not assure a profit or protect against loss in a declining market.


Check the background of this investment professional on FINRA’s Broker Check

Registered office: 825 E. Valley Blvd., 2nd Floor, San Gabriel, CA 91776 Tel: 1-877-722-8429

Cathay Wealth Management is a marketing name of Cetera Investment Services. Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered.

Individuals affiliated with Cetera firms are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.

Click here to view Cetera Investment Services Privacy Policy, other Important Information.

This site is published for residents of the United States only. Registered Representatives of Cetera Investment Services LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Investment Services LLC site at

For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Investment Services, nor any of its representatives may give legal or tax advice.

Investments are:

  • Not FDIC/NCUSIF insured

  • May lose value

  • Not financial institution guaranteed

  • Not a deposit

  • Not insured by any federal government agency


Share This Article:

Social share image