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.
We are also focusing on reconciling your quarter-end account statements to our performance reporting software in the first two weeks of July and expect to have performance reports loaded to your portal during the middle of the month.
We will notify you via email when your performance reports have been uploaded to your portal and encourage you to schedule an appointment with Don, Adam, or Michael to review your plan update and/or portfolio performance. Please call the office at 630-271-0033 to schedule an appointment for late July or August.
Brett Spencer attended the JP Morgan Investment Forum here in Chicago in June. Please see below for Brett’s takeaways:
Signs point to an overall “globally healthy economy.” For growth, however, an investor should consider international investments, and with rising interest rates, an investor should focus on diversifying their fixed income portfolio and using alternative asset class investments to offer diversification and yield.
The US economy is in its 9th consecutive year of growth. This is one of the longest expansions in US history, with the longest being a 10-year long period that began in March of 1991. Considering the US economy is in this “late cycle,” has near full employment and the Federal Reserve’s monetary policy plans, economic growth will likely become more difficult going forward. The good news for projections, however, is that compared to other US economic expansions, this expansion has been much slower. Although current S&P 500 P/E valuations are over the historic average, they are still under one standard deviation of its historic range. The US economy is still viewed as a healthy economy. Even though we are “late cycle,” there is still more room to grow – just don’t expect rapid growth.
International equity underperformance and outperformance has been very cyclical in the past versus US equity performance. For most of the economic recovery, international stocks have lagged US equities. So far in 2017, we’ve seen this trend reverse, as the developed and emerging market stock indexes are both outperforming the S&P 500 index. This could be just the beginning of outperformance given the cyclical nature of this outperformance and international valuations being lower compared to their historical averages than that of the S&P 500.
Starting at the beginning of the 3rd quarter, we will review the 401k investment options for all of our clients that have 401k assets under our management. This helps ensure that your 401k investments are utilized in your overall portfolio as best as possible, even if you have limited investment options or if your plan has proprietary products. Along with the 401k fund reviews, we will be reviewing our “preferred funds list” to analyze whether there are any investments that warrant replacement based upon their historical risk reward characteristics.
Thank you for your continued trust in D3. We hope you have a safe and happy 4th of July!