Affordable Family Office Client Plan Updates: For all of our Family Office clients, we have provided you with plan update data confirmations. If you have not done so, please schedule a time with Patty, to review these data confirmations with Adam or Don, as well as to be introduced to the new D3 client portal. This data confirmation process is the most critical element to your financial plan update.
Advance Portfolio Management Client Portal Migration: We will start to migrate all of our Advance Portfolio Management Clients to our new client portal starting July 15th. All of you will be receiving an email from our new portal provider (EMoney) asking you to set up a login. The portal is very self-explanatory, but if you have any questions, please don’t hesitate to call us.
Performance Reports: We will be loading portfolio performance reports for all clients on to your personal portals between July 15 and July 30th. Based on client feedback, we have simplified these reports. The focus is on long term performance. If any client wants more detail, please let Don or Adam know.
Cyber Security: Because cybercrime attacks are becoming more and more sophisticated, we are asking our clients to watch out for cyber criminals. Two of our clients were recently attacked by Cyber Criminals. One client had their email account compromised, and we received an email request from their email to wire funds to a “relative”. We never transfer funds without talking directly to clients, so we called and they let us know that they did not initiate this request. We reported this to Fidelity and the client had to open all new accounts.
Another client had a pop up window from a website tell them they were infected with a virus and to call a toll free number. On the call they demanded $300 to clean their machine and the hackers wanted to take control of our client’s computer. Our client called us before they paid them and we told them not to pay the money or give them control of their computer.
Please click on this link to download a PDF providing a summary of what to watch out for in hacker emails. Beware the crime of this century.
Just as surprising as the British vote to leave the European Union is the fact that the net effect on all but the European equity markets has been neutral. Perhaps a more ominous signal is coming from the bond markets. The U.S. 10 year bond yield set a record low yesterday and the Japanese 10 year bond went negative for the first time ever. Given these market signals and the uncertainty of how a country gets a divorce, makes it very unlikely that the Federal Reserve will raise rates during the remainder of 2016.
We are now in both a low return market environment and a potentially more fragile economic environment. The risk of uncertainty and recession has increased and that is being reflected in the demand for bonds. Economic statistics to be released in July, August and September will be keenly watched for signs of potential economic weakness.
Let us emphasize what we said last month; “We continue to expect lower than historic average rates of returns on stocks and bonds as a byproduct of slower than average economic growth, and the current low interest rate environment. The 10 year projected rates of return on our asset allocation models reflect this viewpoint.”
In July and August we will confirm that all of our Affordable Family Office clients (when we update your financial plan) and all of our Advanced Portfolio Management clients (when we review your portfolio performance in August) have updated risk profiles. Please call Don or Adam if you would like us to send you a new risk profile questionnaire, or need assistance filling one out. This will help ensure that your portfolio reflects your risk tolerance and your updated financial plan (if you have one).
Brett just completed his CEPA™ designation. CEPA stands for Certified Exit Planning Advisor and is designed to help business owners maximize their wealth as they plan to exit from their business. Next time you talk to Brett, congratulate him for his hard work.
As always, thank you for your confidence in D3 and please keep us in mind when your neighbors, friends and relatives ask you if you know a trusted advisor that focuses on helping people achieve their goals.