To cap or not to cap? That is the question.

Social Security faces benefit cuts of about 24% in 2032 unless Congress intervenes, which has sparked a healthy debate about how to fix the shortfall, with ideas ranging from tax hikes to raising the full retirement age. A new proposal from the Center for a Responsible Federal Budget suggests a different approach: capping annual benefits at $50,000 for singles and $100,000 for married couples. Doing so would plug a fifth of the solvency gap without affecting many current retirees, the group says. The idea isn’t universally loved, however, and survey data show most seniors prefer raising revenues over capping or cutting benefits. Still, the six-figure limit remains a (relatively) palatable option for policymakers.

By the Numbers

The average Social Security benefit in 2026 is $2,024.77, according to data from the Senior Citizens League, meaning a couple with average benefits would collect about $49,000 each year. Only a small fraction of the highest-earning couples collect $100,000 or more, per the Center for a Responsible Federal Budget, namely those who both earned at least the maximum taxable wage (currently $184,500) for at least 35 years and claim benefits after the full retirement age.

Benefits grow as workers earn higher incomes, so a six-figure limit would generate small savings immediately that grow over time:

• An inflation-indexed $100,000 initial limit would save $100 billion over 10 years and close over half of the program’s projected shortfall in the 75th year.
• If frozen for 20 to 30 years, this limit would save $190 billion over 10 years and eliminate up to 60% of the 75th-year funding gap.

The limit alone would not delay insolvency, the proposal acknowledges. But it could help in combination with other reforms, such as the group’s proposal for an employer compensation tax. Specifically, adding a 30-year fixed $100,000 limit to the employer compensation tax would permanently restore solvency. Other groups have proposed caps or flat benefits, including the Cato Institute, which has promoted a universal flat benefit. There are also skeptics, including Shannon Benton, executive director of the Senior Citizens League.

“Rather than taking away benefits from people who have paid into the system their entire working lives, we should focus on strengthening America’s pension system,” Benton said. “Instead of [capping benefits], most seniors would have the government eliminate the cap on Social Security contributions. Americans currently do not pay taxes into Social Security on income above $184,500.”

Party Lines. About 77% of seniors support eliminating the limit, Benton said, with majorities among Democrats, Republicans and independents alike. “This would extend Social Security’s insolvency through at least 2090 without any benefit cuts,” she noted. “That’s even longer than what the six-figure limit proposal would accomplish.”

Space: the final frontier, and increasingly, a serious investment consideration.

The Artemis II crew returned from its orbit around the moon last week, and SpaceX is reportedly preparing for an initial public offering this summer that could value the company at more than $2 trillion. The headlines and enthusiasm for investing in the cosmos are hard to ignore. But for financial advisors, the opportunity is less about chasing big names and more about how to target exposure to a fast-growing space economy, without overreliance on megacap stocks.

“Advisors should look outside of the megacap companies because there are so many small and even microcap groups that are part of the technological supply chain,” said Travis Prentice, chief investment officer at asset manager Informed Momentum.

No One Can Hear You Theme

With SpaceX expected to have such a massive IPO, it may not be long before it shows up in broad index funds like SPY or VOO. That may not be the most opportunistic investing strategy for such a fast-growing sector, though, Prentice told Advisor Upside. “A broader index fund might have exposure to the space sector, but it’s not explicit, and you’re always going to be diluted by other things,” Prentice said.

Space-themed ETFs performances have not just lifted off, but exited the atmosphere:

• The ARK Space & Defense Innovation ETF (ARKX) has returned more than 80% in the past year
• The SPDR S&P Kensho Final Frontiers ETF (ROKT) has climbed 118%.
• The Procure Space ETF (UFO) has skyrocketed a whopping 143%.

Meanwhile, individual stocks like Rocket Lab, Planet Labs and Spire Global, spanning a wide range of market caps, are up hundreds of percentage points over the same period.

Blast Off. Many investors tend to think of the space economy as exploration, asteroid mining and future technologies, when in reality capital is flowing toward AI, cloud computing and blockchain technology, said Andrew Chanin, co-founder and CEO of ProcureAM. “A lot of data movement relies on satellite networks and space-based infrastructure, so in many ways, space is already a core part of the digital economy,” he told Advisor Upside. “It’s just not always visible.”

Armando Pantoja, entrepreneur and tech investor, pointed to companies like Red Wire and the privately held Northwood Space as examples of “picks and shovels” in the space economy. “Launch systems, satellites, parts manufacturers — those are the ones that are going to do a lot better, percentage wise, than something like SpaceX,” he said. “SpaceX is probably a little too high right now, but once it comes out, it’s going to create that halo effect, and the entire sector will start to do well.”

Think less “fish in a barrel” and more “plenty of fish in the sea.”

Wealthy investors, long considered the most attractive prospective clients, are increasingly open to paying for financial advice, according to a recent Cerulli study. Nearly 70% of affluent investors said they would work with a wealth manager last year, up from just under 40% in 2010. Fee compression and greater access to advice have helped drive that shift.

But while the pool of potential clients is expanding, retaining them is a challenge. When clients leave, the issue often comes down to a mismatch between what services advisors think they’re delivering and what clients believe they’re receiving. Many clients say they have a targeted financial plan, while advisors are more likely to characterize their services as comprehensive. Clients may not fully recognize what they’re getting, and when that happens, they might not stick around.

“It’s not enough for advisors to simply have particular services. They need to ensure clients are aware of those services and how they are being delivered,” said John McKenna, senior analyst at Cerulli. “Transparency and the breadth of services are key reasons clients are likely to stay with their advisors long-term.”

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American wealth is growing, particularly among the already wealthy. Since 2010, those with net worths of more than $2 million, have added over $40 trillion to their total assets, and like Biggie said: “Mo money, mo problems.” Still, advisor usage doesn’t scale neatly with wealth, the Cerulli study found:

• The rate of advised investors jumps from 35% among those with $100,000 to $250,000 in assets to 57% among those with $1 million to 2 million.
• But then it drops to just 45% among those with $5 million or more.

When an investor has that much money, they’re still open to an advisor, but they’re looking for more bespoke, high-net-worth-focused services like tax optimization, business succession planning, estate planning and elder care and insurance. “This highlights a challenge advisors face when it comes to retaining or acquiring clients: Do they know what services you offer or what they are using?” McKenna told Advisor Upside.

Digital Face Lift. Client acquisition is evolving, too. Referrals and recommendations are still important for growing a book of business, but a lot of the discovery process is moving online, McKenna said. “Advisors will need to ensure that their websites are presentable and can effectively communicate their value proposition to prospective clients after a first contact,” he said. “Firms that can adapt to this new terrain will have the most success obtaining and retaining new clients.”