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.
There are two major drags on the success of your financial plan: fees and taxes. Fees are necessary to get professional management and advice and usually average about 1.5%. You should evaluate the value you get by paying fees at least annually. Taxes are a significantly bigger drag than fees. The lowest capital gains tax rate is 15% or ten times as much as the average advisor fee. If you can minimize the tax drag on your wealth accumulation and retirement drawdown strategies, you can significantly increase cash flow and family wealth.
D3 Comments on Market Volatility We have been sharing with all of our clients for at least 6 months that a technical correction in this market was long overdue. Our primary indicator was that normal volatility in the market had been very subdued and abnormally low.
Business Update Portfolio Performance: We look to reconcile all client accounts by January 10th. Once all accounts are reconciled we will review your portfolio performance reports and look to have them on your client portal or mailed to you by January 19th.
Plan Update & Performance Reviews We continue to work on our Affordable Family Office clients’ financial plan updates. Our focus for the plan updates is to determine if there are any course adjustments needed based upon changes in your savings, spending, and net worth. In addition, we are looking to add value through long-term tax savings strategies. We expect to have all financial plan updates completed by the end of July.
What is the Difference between a Financial Plan and Financial Planning? A financial plan is a static point-in-time view of your financial position, whereas financial planning is an ongoing, dynamic process that helps to keep your financial plan on track. At D3, we do financial planning.