Happy New Year! Hopefully everyone had a relaxing and enjoyable holiday celebration. This letter is focused on the portfolio management changes we will be making next week.
Asset Allocation Model Changes:
We have completed our review of D3’s asset allocation models and will be making minor modifications (see attached chart). In general the changes are to reduce fixed income exposure or equity income exposure (which includes fixed income) and increasing international exposure. The rationale for the changes is that the U.S. and Global economies will continue on a slow growth, but slightly accelerating trend. Interest rates are poised to rise, potentially causing a decline in fixed income positions and international equity valuations are extremely attractive. We will be executing these changes next week, as well as moving out of some underperforming funds. For clients that have specific portfolio overrides (i.e. for cash flow or customized risk management) we will continue to have those overrides in your portfolios.
Tax Law Changes:
The AICPA society provided us with a pretty concise summary of what tax laws were enacted at 2:00am on January 1st, 2013. The “Fiscal Cliff” tax summary is attached as a PDF to this correspondence.
Neil Lefort has retired for the second time in his career; this time from D3. Neil has decided to spend more time with his family and utilize his vacation home in Saugatuck, Michigan.
Don’t Miss the Concert:
As we shared with you before Christmas, D3 has established an hourly financial planning second opinion service or $O$. To promote this in the Chicago metropolitan area we are co-sponsoring the winter concert at the Tivoli Theater and are advertising on WXRT radio station. Last year, Grammy award winner, Mavis Staples, was the entertainer at the concert.
More importantly for you, we are giving away tickets for the concert to clients that refer the most business to us between now and February 1st. Whichever client refers the most will receive 4 VIP tickets. We consider it an honor and a privilege to receive referrals and we hope this experiment to promote our Financial Planning $O$ will be an incentive and a reward for some of you.
Don Duncan MBA CPA CFA™ CFP® Michael Meyers MBA CFP®
Adam Glassberg CFP® CIMA® Patty Shipinski, Office Manager
Ryan Pace, Financial Planner
We serve our clients by providing Integrity, Trust, Wisdom and Confidence.