Business Update

At D3 we are focused on the following activities:

Taxes for AFO (Affordable Family Office) Clients: As we get closer to the end of another tax season, we would like to remind all of our AFO clients that we are not just doing taxes; we are also doing tax planning. For every tax return that we complete, we look for opportunities to implement tax savings strategies whenever possible. Examples include IRA and HSA contributions that can still be made until the date your tax return is filed.

As a reminder, tax planning for next year begins today. To help you plan for next year, later this month we will be emailing everyone a tax organizer to help you keep track of tax deductible expenses.

Financial Plan Update Season: Similar to how we generate value by doing tax planning, we also generate value by updating our AFO clients’ financial plans every year. We believe updated financial plans, reflecting your current goals and current market conditions, provide you the peace of mind that as your life changes, your financial plan reflects those changes.

All our AFO clients will be receiving a notification towards the end of April or early May that their plan update Data Confirmation Report is on their client portal. We strongly encourage you to review this information, because it is critical to make sure your cash flow and assets are up-to-date to ensure your financial plan update will be accurate and meaningful.

Our goal in this process is to use our financial planning skills to help maximize the probability that you can achieve all your financial goals. If any other D3 client wants a financial plan update, please contact Adam or Don.

D3 Out and About in the Community: D3 will be busy in April volunteering in the community:

  • April 3rd University of Illinois at Chicago – Adam Glassberg presented to the UIC’s 2018 Medical School’s Graduating class. This is the 7th year that Adam has been invited back to present!
  • April 5th Santa Fe Business Expo – To help promote the opening of D3’s new office in the Santa Fe area, Don participated in this event to build connections and brand recognition with local business owners and individuals in the community. A picture from the event is below.
  • April 22nd College of DuPage’s Wisdom, Wonder and Wellness Senior Expo – In conjunction with Money Smart Week, Adam Glassberg will be presenting “Tax Planning for 2018 & Beyond – How to make the most out of the Tax Cuts & Jobs Act” at 1:40 p.m. Click here for more information about the event.
  • April 23rd Money Smart Week at the Harold Washington Library in Chicago – From 12-3 pm, Adam Glassberg, Michael Smith, Brett Spencer, Kirsten Simon and Don Duncan will be volunteering to meet with individuals for one-on-one financial planning sessions. These sessions answer questions and provide resources on various topics ranging from cash flow prioritization, debt management, 401(k)s and Social Security. Click here for more information on the event.

Market Insight

Over the last two weeks, the U.S. stock market experienced it’s second loss of greater than 5% in 2018. The recent volatility has mainly been attributable to tariffs imposed by the United States and the retaliation tariffs imposed by China. The markets view these tariffs as concerning because they could accelerate inflation, which already is a market concern due to the growing economy and the tight labor market. As we all know, financial markets abhor uncertainty and uncertainty is being introduced via uncertain U.S. trade policy.

The recent downturn in the U.S. equity markets has moved U.S. stock valuations back in line with 25-year averages. Assuming no trade war, worldwide economic growth remains steady and that should support corporate profit growth going forward while also being augmented by lower tax rates. Our outlook continues to be steady global growth.

Investment Strategy

As financial planners we take a long-term approach to investments and develop portfolios that are in line with our clients’ financial plans and emotional tolerance for risk. If the volatility of your portfolio has caused any undue stress in your life, we encourage you to give us a call so we can review if your financial plan and/or portfolio structure needs immediate revision.

Over the next few weeks, we will be performing the quarterly review of our preferred list of investment funds (mutual funds and exchange traded funds) in our client’s portfolios. We are always looking to identify potential products that can bring better risk-adjusted returns to our clients’ portfolios. In early May, we will review liquidity in all of our client’s portfolios relative to cash flow needs and will be making any necessary adjustments.

Final Thoughts

Your financial plan should always dictate the level of risk that you need to take with your investments. Your investments should be structured to maximize the probability of achieving 100% or your financial goals. As your life changes and markets change, you should make sure that your financial plan and the resulting portfolio structure reflects your current goals. As always, thank you for your confidence in D3. We look forward to April 18th, the end of tax season.