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.

latest posts
September 30, 2021

Equity Compensation and Its Tax Ramifications

Equity compensation is used by many types of employers. Most startups use equity compensation to reduce their burn rate while keeping their compensation competitive. As a company matures and cash compensation becomes less problematic, many companies continue to offer equity compensation to align their employees’ interests with those of the company.

Read This Article >
September 8, 2021

What are Restricted Stock Units and How Are They Taxed?

We continue to talk to more people who are compensated by their employers with Restricted Stock Units. This form of compensation allows companies to incentivize their employees by granting them ownership in the firm. This is known as equity compensation, which is provided alongside base salary, bonuses, and other benefits.

Read This Article >
July 7, 2021

The Growing Popularity of ESG Investing

As we continue to move out of the pandemic and closer to our new sense of normal life, there is growing concern about the condition of the environment, and an increased interest in taking purposeful action to reverse man-made climate change. All generations of consumers are gravitating towards businesses that make environmentally conscious choices, and this trend is exaggerated in younger folks.

Read This Article >
Jason Draut, CFP®
info@harborlight.investments
516 El Cerrito Plaza
El Cerrito, CA 94530
510-558-8272
Chris Sheehy, CFP®
info_sc@harborlight.investments
180 7th Ave Suite 204
Santa Cruz, CA 95062
831-291-3843
© 2020 HarborLight Investments