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How IFA Keeps You Up to Date on Your Portfolio

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As an investment fiduciary, Index Fund Advisors has an obligation to always act in the best interests of our clients. This would include ongoing monitoring of their portfolios for rebalancing and tax-loss harvesting opportunities, while regularly adjusting the risk level of portfolios in accordance with the client's glide path.

A question you might ask is, "How do I, as a client, know that IFA is actually doing what they say they're doing?" The answer is in an e-mail that is sent to our clients addressing these issues. Below is a sample of one of these e-mails concerning tax-loss harvesting with a hypothetical name and assembly of phrases that could be used, depending on the circumstances.

(In an actual email, the dates are also included for estimated periods when each actual process might be scheduled to be implemented. Also, all data ranges and numbers are hypothetical and presented here for illustrative purposes. We'll use ** as a way to generically denote specific numbers that are typically used in actual emails to clients.)

Dear Anne, 

We reviewed your Index Portfolio to determine if tax-loss harvesting is advisable.

As of **** the following positions are considered eligible for a tax-loss harvest. 

Daily fluctuations may change the amounts shown in the table below.

If you would like to proceed with the tax loss harvesting, please "Reply to All" to this email and copy/paste this statement: "Please proceed with the recommended Tax Loss Harvest trades".

Account Holding Market Value Cost Basis Unrealized Loss
1********5566 DFLVX $39,362.75 $45,479.79 ($6,117.04)

Please call me at 888-643-3133 if you have any questions regarding rebalancing or tax-loss harvesting.

Note that if you have any time-sensitive requests, please make certain that you call your Client Service Specialist or Wealth Advisor rather than email.

It is important that you understand the criteria and methods IFA uses for tax loss harvesting as well as the potential risks and benefits.

We recommend that you speak with your tax professional in order to completely understand your unique situation. If you need tax advice and/or tax return preparation, we have a new division that can help you, IFA Taxes.

Separately, our clients also recieve email notifications when their portfolios need rebalancing. Below is an example of how such a correspondence might appear. Again, we're using hypothetical names and numbers for illustrative purposes only. 

Dear Mitchell,

Our Portfolio Management Department has reviewed your IFA Index Portfolio to determine if it requires rebalancing. This review revealed that the following asset class(es) has/have moved beyond IFA's rebalancing thresholds. (For further information on our reblancing policy, please click here.)

Account Target Threshold Value Actual
U.S. Large Company 24.00% 19.00%-29.00% 29.676%

If you approve this rebalance you may be required to pay custodian trading fees and, in taxable accounts, rebalancing may result in realizing capital gains.

When responding to this email, please "Reply to All" providing us with authority to place the trades or not. If you have any questions, please contact me or your dedicated Client Service Specialist.

IFA recommends portfolio rebalancing as an important strategy to maintain the risk level of your portfolio.

Thank you for being a valued client and allowing IFA to assist you in accomplishing your financial goals.

If you have an investment advisor who is not regularly informing you on the status of your portfolio, you may want to consider if you are getting your money's worth. To obtain the fiduciary services of an IFA advisor, please call us at 888-643-3133 or take the IFA Risk Capacity Survey. Also, our division IFA Taxes can help you with personal and business needs relating to tax-return preparation, tax planning, bookeeping and accounting services. 

This article is distributed for informational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. There is no guarantee investment strategies will be successful.  Investing involves risks, including possible loss of principal.