Client Survey: We have mailed out our annual client survey. Your input helps us improve our business to better serve your needs. Please fill this out and mail it back to us, or use the following link. //www.surveymonkey.com/r/KYN5ZKK
Save the Date: Our annual client appreciation event will be held on Saturday November 21, 2015 at Parkers Restaurant. We will be sending an invitation with more details at a later date.
Tax Loss Harvesting: We finished our initial tax loss harvesting trades for the taxable accounts for our Affordable Family Office (AFO) clients. Our objective was to maintain our long term strategic asset allocation, while capturing losses to offset either existing capital gains or ordinary income. For clients in a combined 30% tax rate, we save an estimated $1,000 in federal and state income taxes. For our Advanced Portfolio Management clients we will wait until closer to year-end, when we have a better estimate of capital gains distributions, to complete your tax loss harvesting.
Estimated Taxes: For all our AFO clients that responded to our questions, we completed your estimated tax analysis. Our objective was to determine if you needed to make any additional tax payments. We have alerted all clients that need to take action.
Insurance Review: We will be completing the steps necessary to conduct our annual insurance review for our AFO clients. Once we provide you with the insurance summary, please let us know if you want to discuss your insurance situation or are contemplating a change (i.e. health insurance enrollment). For all other clients, we can review your insurance on an hourly basis if you would like us to do so.
D3 Breaking News:
- D3 provided pro bono financial planning advice to veterans through the Homes on the Homefront Program. Follow the link to read more.
- D3 provided support to DuPagePads, which aids homeless families and individuals obtain housing and employment, by donating to the 11th annual Run 4 Home! run/walk. Read more here.
- D3 sponsored the letter “D” for Literacy Dupage. Read more about the program here.
Volatility, volatility, volatility. What is causing this volatility? China and the Federal Reserve Bank. The jury is still out on whether China will have a hard or soft economic landing. The Chinese government is broadening their economic stimulus packages to try and insure a soft landing. Some of the recent economic data (improvements in industrial production and retail sales) indicate that they are having some success.
The Federal Reserve confused the market by not raising interest rates. Market participants have interpreted this inaction as meaning the Federal Reserve is concerned about the fragility of the U.S. economy. The employment numbers released today, being lower than the average previous three months, is adding fuel to this speculation. The reality is that the U.S. economy is stronger than it has been in the past 5 years. We believe the Federal Reserve will shortly move to get off its 0% interest rate policy and remove this uncertainty and concern.
Our job is to create investment portfolios that reflect the goals of your financial plan with the minimal amount of risk necessary to achieve those goals. Typically, the financial plan time horizons are longer than 10 years so market volatility is baked into the plan. If we see an economic correction or asset bubble we will adjust the plans, but right now we do not see either of these on the horizon.
If anyone is concerned that their financial plan cannot withstand this volatility, please give us a call. We will review the rationale for your portfolio construction and demonstrate how it is designed to achieve your long term goals even with this market volatility. In our perspective, the biggest impact to a financial plan is if the plan goals change, the time horizon changes or if cash flow needs change.
We want to be attentive to your concerns. Again, if anyone is concerned about how this volatility affects your plan or if your goals or cash flow needs change, please give us a call. As always, thank you for your confidence in D3.
We look forward to seeing you all in November when hopefully some of this uncertainty will be behind us.
Thank you for your confidence in D3 Financial Counselors and share with your family and friends that “We help smart people make smarter financial decisions.”