How IFA Keeps You Up to Date on Your Portfolio

Tuesday, September 3, 2013 11,239 views

As an investment fiduciary, Index Fund Advisors has an obligation to always act in the best interests of our clients. This would include regular monitoring of their portfolios for rebalancing and tax loss harvesting opportunities, while regularly adjusting the risk level of the portfolio 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 out quarterly to our clients addressing these three issues. Below is a sample of one of these e-mails with a hypothetical assembly of phrases that could be used, depending on the circumstances.

Dear Client,

We have reviewed your Index Portfolio containing accounts ****1234 (Individual), and ****5678 (Traditional IRA) to determine if a rebalance is necessary. Your Portfolio is designed to have a risk exposure equivalent to IFA Index Portfolio 60.

The latest analysis revealed that as of 8/29/2013 your portfolio has positions beyond the tolerance thresholds set for IFA Index Portfolio 60, as shown below.

We recommend that you approve a rebalance to your Index Portfolio. You will be required to pay trading fees to your custodian and some rebalancing trades in taxable accounts can generate capital gains taxes. For further information on our rebalancing policy please click here.

We also reviewed your Index Portfolio to determine if tax loss harvesting is advisable. As of 8/29/2013 the following positions are considered eligible for a Tax Loss Harvest. Daily fluctuations may change the amounts shown in the table below.

It is important that you understand the criteria and methods IFA uses for tax loss harvesting as well as the potential risks and benefits. For further information on our tax loss harvesting policy click here to see the educational video and text explaining the strategy.

We advise you to allow IFA's portfolio managers to use their discretion as to which funds will be tax loss harvested.

We recommend that you speak with your tax professional in order to completely understand your unique situation.

Because you elected to participate in a Glide Path strategy, the risk level of your portfolio is scheduled to be reduced by 1 on 1/12/2014.

Please call us 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 rather than email.

This email was sent to you and your advisor from the IFA Risk Management Department.

Best Regards,

IFA Risk Management Department

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 Risk Capacity Survey.

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