It’s hard to believe, but in a few short weeks, students will be graduating from high school or returning home from college to spend the summer with their families. In between summer jobs and vacations, the summer is a great opportunity to have important conversations with children about their own financial and estate planning.  

A Special Needs Trust (SNT), also known as a Supplemental Needs Trust, holds assets for the benefit of a person with disabilities while preserving eligibility for needs-based benefits such as Supplemental Security Income (SSI) and Medicaid. Funds from the trust are used to supplement public benefits, not replace them.

Trusts, both revocable and irrevocable, can be a great planning tool for all sorts of circumstances, particularly now with the ability to create very flexible trusts. One type of irrevocable trust is called a grantor trust - sometimes referred to as an intentionally defective grantor trust (IDGT) – and it offers potential tax-savings opportunities under the right circumstances.

At Howland Capital, we believe that our greatest asset is our people. We are committed to fostering an environment where talent is recognized and career growth is encouraged. In that spirit, we are pleased to announce the promotions of Gianni Reid and Evan Pennoyer. 

We are pleased to announce that Richard Kutia, our Chief Fiduciary Officer, has been named a Partner at Howland Capital. Since joining the firm in 2024, Richard has become a valued resource for our team and our clients. His elevation to Partner reflects the significant impact he has made in overseeing our trust and estate administration and his dedication to developing integrated wealth management strategies that address the complex needs of the families we serve.

We are proud to announce that Peter Dixon has been named President. Peter's dedication to the firm and his strategic perspective position him well to help lead Howland Capital as we continue to build for the future. He will continue to serve as Chief Investment Officer and as a Portfolio Manager, remaining deeply involved in investment research and the direct management of client portfolios.

When we entered the new year, the market widely anticipated a continuation of the Federal Reserve’s easing cycle (i.e. interest rate cuts) in 2026. Given the recent escalation in the Middle East, the interest rate path for 2026 has become less clear. Consensus in the market now calls for zero interest rate cuts this year – a reduction from the two rate cuts anticipated at the start of the year.

After a relentless multi-year push higher, stocks pulled back in the first quarter, with the tech-heavy Nasdaq index even reaching correction territory (down more than 10% from its peak). Though we are still in the early innings of the development and rollout of artificial intelligence, soaring capital expenditure forecasts for the mega cap tech players have called into question the timing and magnitude of the returns that leading tech companies will ultimately realize on their investments.

The U.S. economy entered 2026 on uncertain footing, and the first quarter did little to change the tone. The fourth quarter GDP was revised down to a 0.7% annual growth rate by the Bureau of Economic Analysis. What was initially a weaker reading from the prolonged government shutdown was subsequently lowered due to slower-than-expected consumer spending and business investment.