HarborLight 2017 Q1 Client Update

Updated Model Portfolios

We are pleased to announce that updated model portfolios are being rolled out across client accounts. In response to expected changes in US policy due to GOP control of Congress and the White House we are shifting our portfolios to prepare for potential increases in inflation in the coming year.

This includes:

  • Moving into inflation-protected securities in our fixed income holdings
  • Adding a gold sector fund that should do well in an inflationary environment
  • Shifting some US equity exposure from large cap value to small cap.

Along with these changes we are simplifying our core equity exposure from four Dimensional Fund Advisors (DFA) mutual funds down to two. Reducing the number of funds will lower transaction costs and simplify rebalancing. The basic positioning is not changing as we consolidate from three regional funds into one global fund.

Tax time

If you have a taxable account or a retirement account with distributions, you should have received a 1099 in the mail from TD Ameritrade. These are also available on the TD Ameritrade website as well as via the Advyzon document vault.

Please let us know if you didn’t receive your 1099 in the mail or can’t access it online.  If you have any other tax-related questions, just ask!

Financial Planning

Our new financial planning software, Right Capital, is available to all clients. If you need to start planning for retirement, saving for college, or want to get a better feel for your entire financial picture please contact us.

The system gives you the power to identify your family's unique goals then create a clear road map for accomplishing them.  

Lower Commissions

Stock and exchanged-traded fund (ETF) trades at TD Ameritrade are now just $6.95. Our models use zero-commission ETFs whenever possible so this will not have a large impact for our clients, but lower costs are always good.

Along with this, DFA has lowered the trading costs on their mutual funds from $24 to $9.99, which also reduces the cost of rebalancing your accounts.

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Jason Draut, CFP®
516 El Cerrito Plaza
El Cerrito, CA 94530
Chris Sheehy, CFP®
180 7th Ave Suite 204
Santa Cruz, CA 95062
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