Your Weekly Update - Happy Holidays!

	Weekly Market Recap 2016 is less than a week away, so if there are any last tasks you need to perform to put your 2015 finances in order, the next few days are the time to do it. For example, if you're planning to make any charitable donations, then making a donation using appreciated stock can be a good way to potentially increase your 2015 tax deductions and support a cause you care about. On the other hand, fortunately, a lot of activities related to IRA contributions can typically wait until the 2015 tax filing deadline, generally in April 2016. Though if you get them out of the way during this holiday period, you may thank yourself later. Lastly, if you are over 70 ½ and have an IRA, or if you have an inherited IRA, you will want to make sure you have taken your full required minimum distribution (RMD). Generally, the deadline for taking an RMD is December 31 (the deadline for taking your first RMD is April 1 of the year after the year you turn 70 ½). The tax penalties for missing this distribution by year-end are quite severe and make taking your RMD worth remembering. If you are 70 ½ or older and are planning to make a charitable donation for the year, you can direct that up to $100,000 be distributed from your IRA directly to a charity tax free, and the distribution will count towards your RMD for the year. Happy holidays to you and your loved ones, from all of us at FutureAdvisor! Disclaimer: The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by FutureAdvisor. All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. Clients may lose money. Past performance is not indicative of future results. Investments in securities involve the risk of loss. Any tax strategies discussed should not be interpreted as tax advice and do not represent in any manner that the tax consequences detailed will be obtained. Clients should consult with their personal tax advisors regarding the tax consequences of investing. Your Portfolio Summary $9,230.31 Your Total Assets Ways To Improve Your Portfolio 0 Accounts with Actions Your portfolio has no recommended actions right now. We'll watch over your investments and alert you with an email when there are actions for you to complete. Sign in to see detailed steps Sign in to see your full dashboard If you wish to change your email settings, visit your Settings.
	FutureAdvisor | 116 New Montgomery St, Suite 300, San Francisco 94105 Drop us a note anytime: advisor@futureadvisor.com

Your portfolio down 2.7% over the last 30 days as Fed raises rates

	Weekly Market Recap This week the Board of Governors of the Federal Reserve (the "Fed") raised interest rates in the US. In our view, this signaled some confidence in the US economy and specifically in a strong US labor market. However despite this decision, US interest rates remain low by historical standards and the new target rate of 0.25%-0.5% is below the past several decades of the Fed Funds rate prior to 2009. However, we do not believe the Fed's recent action makes continued rate increases a certainty. For example, the recent experience of Japan shows that interest rates set by a central bank could remain below 1% for 20 years. Remember too, that our recommended portfolio is internationally diversified. Though the actions of the US Federal Reserve can be important, your portfolio has global exposure and responds to global monetary conditions. This is important to bear in mind as US monetary policy decisions dominate the media. Additionally, according to the book, Invest With The Fed, both equities and bonds have historically delivered positive returns over a 48 year sample period regardless of whether rates were rising, falling or indeterminate. Based on this analysis, the actions of the Fed, in part because they are taken in response to a robust US economy, may not necessarily be harmful to our recommended portfolio. Notes: Fed release: http://www.federalreserve.gov/newsevents/press/monetary/20151216a.htm US rates: https://research.stlouisfed.org/fred2/series/FEDFUNDS Japanese rates: https://research.stlouisfed.org/fred2/series/INTDSRJPM193N Invest with the Fed: Maximizing Portfolio Performance by Following Federal Reserve Policy, R. Johnson et al, McGraw-Hill, 2015 Disclaimer: The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by FutureAdvisor. All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. Clients may lose money. Past performance is not indicative of future results. Investments in securities involve the risk of loss. Any tax strategies discussed should not be interpreted as tax advice and do not represent in any manner that the tax consequences detailed will be obtained. Clients should consult with their personal tax advisors regarding the tax consequences of investing. Your Portfolio Update Portfolio Total $9,147.23 30-Day Returns -2.7% Your Portfolio -3.4% Target Portfolio 21-Year Forecast Annualized +7.8% Your Portfolio +7.5% Target Portfolio Over the past month your portfolio was down 2.7%, and we have no recommendations at this time to improve it. Congratulations on maintaining one of the best portfolios among all our clients. We will, as always, continue monitoring your account and alerting you if there are actions to take (periodic rebalancing is required, etc). Ways To Improve Your Portfolio 0 Accounts with Actions Your portfolio has no recommended actions right now. We'll watch over your investments and alert you with an email when there are actions for you to complete. Sign in to see detailed steps Sign in to see your full dashboard If you wish to change your email settings, visit your Settings.
	FutureAdvisor | 116 New Montgomery St, Suite 300, San Francisco 94105 Drop us a note anytime: advisor@futureadvisor.com

Your portfolio down 1.6% over the last 30 days as oil hits new lows

	Weekly Market Recap The price of oil recently fell below $40 per barrel, attracting attention in the media, given that oil was trading over $100 per barrel last year. A falling oil price is generally bad for the stocks of energy producers. On the other hand, it can be positive for companies that use oil in their products and services from airlines to chemical companies, since their input costs will typically fall as a result of lower oil prices. This is one example of how a diversified portfolio can help manage risk. What hurts one sector of the economy, or stock market, can help another. Also, remember that historical context can be useful. For example, in March 1999 the oil price fell to $10 a barrel and a cover article in the Economist, titled "Drowning in oil" mentioned that the oil price could fall further to $5. In fact, over the following 12 months the price of oil tripled. We use this example not to forecast the oil price, but to illustrate just how challenging it can be to make short-term predictions. What can be helpful in situations such as this is a concept known as value investing. This is not attempting to predict the future, but looking to add potentially less expensive stocks to your portfolio based on current metrics. Looking at US stock performance data from July 1963 to December 1990, Fama and French found that holding less expensive stocks (as assessed on a price/book value basis) historically boosted returns by 0.42% per month or 5.1% a year, on average, relative to holding a portfolio of stocks that appeared to be at an average valuation using the same approach. Value investing is an approach we look to implement by holding value tilted ETFs in our stock allocation, as well as our automatic rebalancing process across asset classes. Notes: Oil price: https://research.stlouisfed.org/fred2/series/DCOILWTICO Economist cover from 1999: http://www.economist.com/node/21519208 Fama and French on value investing: http://www.bengrahaminvesting.ca/Research/Papers/French/The_Cross-Section_of_Expected_Stock_Returns.pdf Disclaimer: The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by FutureAdvisor. All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. Clients may lose money. Past performance is not indicative of future results. Investments in securities involve the risk of loss. Any tax strategies discussed should not be interpreted as tax advice and do not represent in any manner that the tax consequences detailed will be obtained. Clients should consult with their personal tax advisors regarding the tax consequences of investing. Your Portfolio Update Portfolio Total $9,083.57 30-Day Returns -1.6% Your Portfolio -2.5% Target Portfolio 21-Year Forecast Annualized +7.8% Your Portfolio +7.5% Target Portfolio Over the past month your portfolio was down 1.6%, and we have no recommendations at this time to improve it. Congratulations on maintaining one of the best portfolios among all our clients. We will, as always, continue monitoring your account and alerting you if there are actions to take (periodic rebalancing is required, etc). Ways To Improve Your Portfolio 0 Accounts with Actions Your portfolio has no recommended actions right now. We'll watch over your investments and alert you with an email when there are actions for you to complete. Sign in to see detailed steps Sign in to see your full dashboard If you wish to change your email settings, visit your Settings.
	FutureAdvisor | 116 New Montgomery St, Suite 300, San Francisco 94105 Drop us a note anytime: advisor@futureadvisor.com

Your portfolio down 1.0% over the last 30 days as Europe cuts interest rates

	Weekly Market Recap In the US this week we saw healthy employment data, combined with some evidence of a softer manufacturing sector. The European Central Bank lowered interest rates and extended its asset purchase program out to March 2017. These efforts are intended to boost European growth. The US Federal Reserve Board meets the week after next, and is expected by many to raise interest rates. This is in part due to the positive economic data we have seen of late. What does this mean for your portfolio? The first thing to note is that trying to predict the Fed is not easy. Forecasters have anticipated the Fed raising rates for the past several years only for many to be proven wrong. For example, many thought rates would rise this September and that did not happen. We saw similar forecasts in 2014 and even 2013. So even though a rate increase may seem probable this December, in our view, these events are seldom certain. We believe trying to adjust a portfolio based on predicting short-term events can lead to higher trading and tax costs, and not necessarily better investment outcomes. It is also important to remember that we regard international diversification as an important part of portfolio construction. While European and Chinese central banks have been easing their monetary policies, the US appears poised to tighten. It's clear that the global economies are at diverse points in their economic business cycles. Even though you'll likely see more headlines about what is happening to US interest rates, remember that an international portfolio is exposed to a broad set of global events. This may help smooth investment outcomes and volatility of an investor's portfolio over time. Our view is that the reason the Federal Reserve is considering higher interest rates is because the US is experiencing relatively low unemployment and potentially increasing inflation for the intermediate term. Both of these are generally considered signs of a healthy, growing economy, and economic growth can be an important contributor to stock market growth. Finally, according to research published in the book Invest With The Fed, returns of equities and bonds have historically remained positive during periods of tighter monetary policy. So, if the Fed does raise rates this month, remember that it is in response to the positive scenario of a strong US economy, and that periods of rising interest rates in the US have historically correlated with positive market returns. Notes: US Jobless Claims: http://www.dol.gov/ui/data.pdf US Manufacturing: https://www.instituteforsupplymanagement.org/ismreport/mfgrob.cfm ECB Announcement: https://www.ecb.europa.eu/press/pressconf/2015/html/is151203.en.html Predictions of Fed rate hike: http://www.bloomberg.com/graphics/2015-fed-rate-hike-predictions/ Invest with the Fed: Maximizing Portfolio Performance by Following Federal Reserve Policy, R. Johnson et al, McGraw-Hill, 2015 Disclaimer: The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by FutureAdvisor. All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. Clients may lose money. Past performance is not indicative of future results. Investments in securities involve the risk of loss. Any tax strategies discussed should not be interpreted as tax advice and do not represent in any manner that the tax consequences detailed will be obtained. Clients should consult with their personal tax advisors regarding the tax consequences of investing. Your Portfolio Update Portfolio Total $9,322.03 30-Day Returns -1.0% Your Portfolio -1.3% Target Portfolio 21-Year Forecast Annualized +7.8% Your Portfolio +7.5% Target Portfolio Over the past month your portfolio was down 1.0%, and we have no recommendations at this time to improve it. Congratulations on maintaining one of the best portfolios among all our clients. We will, as always, continue monitoring your account and alerting you if there are actions to take (periodic rebalancing is required, etc). Ways To Improve Your Portfolio 0 Accounts with Actions Your portfolio has no recommended actions right now. We'll watch over your investments and alert you with an email when there are actions for you to complete. Sign in to see detailed steps Sign in to see your full dashboard If you wish to change your email settings, visit your Settings.
	FutureAdvisor | 580 Market St., Suite 500, San Francisco, CA 94104 Drop us a note anytime: advisor@futureadvisor.com

Your portfolio down 0.4% over the last 30 days as US Q3 growth upped to 2.1%

	Weekly Market Recap This week was relatively slow for economic news given the Thanksgiving holiday. According to the Bureau of Economic Analysis, US economic growth in the third quarter was revised up to 2.1%. We want to focus on the recent trends in US inflation and what it could mean for your portfolio. Inflation is the rate at which prices change. High inflation means prices are, on average, rising quickly. Currently, there is significant focus on how low inflation is in the US. For example, the year-on-year US inflation rate is currently 0.2% according to the Bureau of Labor Statistics. However, this is not the full picture, because energy prices have fallen 17.1% over the last 12 months to October 2015. We believe this move in energy prices is a large enough move in a single category to materially reduce the inflation index, which can make inflation appear a little more subdued than the underlying rate may actually be. Furthermore, inflation measures the change in a price, so unless energy prices change further, then after 12 months the drag on inflation from energy prices will, all else being equal, stop because the price will no longer be changing when compared to a year ago. So headline inflation is currently 0.2%. However, when the historically volatile food and energy components are excluded from the inflation calculation, the resulting figure is often described as core inflation. Core inflation is running at 1.9%. This is just below the US Federal Reserve's 2% goal for inflation. So, we believe the impact of falling energy prices, which could be temporary, is what is creating such a low rate of inflation currently. Increasing inflation has historically not been favorable for savers or investors and remains a compelling reason why the Federal Reserve is likely to eventually raise interest rates. From this context, you can see how a Fed rate hike is actually a move to protect the domestic economy and the savers and investors in America. This is also another reason why we view Treasury Inflation Protected Securities (TIPS) and Real Estate Investment Trusts (REITs) as an important component of a diversified investment portfolio. TIPS can compensate investors directly for changes in the rate of inflation. REITs derive their value from property, which is an asset that we believe is relatively well protected from the effects of inflation when compared with other asset classes because rents and property values can rise in line with broader price trends. So remember, though inflation appeared subdued on some measures, on an underlying view it is higher than it first appears due to the impact of energy prices currently bringing inflation down in a manner that may not be sustainable. Should inflation rise unexpectedly, we believe REITs and TIPS in an investor's portfolio can offer a degree of protection. Notes http://www.bls.gov/news.release/pdf/cpi.pdf https://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm Disclaimer: The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by FutureAdvisor. All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. Clients may lose money. Past performance is not indicative of future results. Investments in securities involve the risk of loss. Any tax strategies discussed should not be interpreted as tax advice and do not represent in any manner that the tax consequences detailed will be obtained. Clients should consult with their personal tax advisors regarding the tax consequences of investing. Your Portfolio Update Portfolio Total $9,409.85 30-Day Returns -0.4% Your Portfolio -0.7% Target Portfolio 21-Year Forecast Annualized +7.8% Your Portfolio +7.5% Target Portfolio Over the past month your portfolio was down 0.4%, and we have no recommendations at this time to improve it. Congratulations on maintaining one of the best portfolios among all our clients. We will, as always, continue monitoring your account and alerting you if there are actions to take (periodic rebalancing is required, etc). Ways To Improve Your Portfolio 0 Accounts with Actions Your portfolio has no recommended actions right now. We'll watch over your investments and alert you with an email when there are actions for you to complete. Sign in to see detailed steps Sign in to see your full dashboard If you wish to change your email settings, visit your Settings.
	FutureAdvisor | 580 Market St., Suite 500, San Francisco, CA 94104 Drop us a note anytime: advisor@futureadvisor.com

Your portfolio down 0.6% over the last 30 days as markets move up on positive data

	Weekly Market Recap This week saw continued strong jobs and manufacturing data in the US, with housing data coming in weaker than expected. Internationally, consumer confidence in the Eurozone improved in early November. Recent European Central Bank statements hinted at further stimulus targeted at improving Eurozone growth. Major stock markets in France, and globally, rose for the week, despite last weekend's tragic events. One thing to consider, as you think about retirement planning, is that your investment time horizon for retirement may be longer than you realize. A lot of the focus is on your time until retirement (the period over which you can save), but given long life expectancy in retirement, your portfolio may continue to be invested long after you retire. Once in retirement, retirees generally do not sell their investments overnight, but rather steadily draw down their savings incrementally and so a significant amount of funds may continue to be invested, often for at least a decade. So don't assume that the number of years until you retire is the extent of your investment time horizon. It's possible that your money will be invested for significantly longer than that. Our portfolio allocations are intended to reflect this, but not everyone realizes how long their investment time horizon might be. For example, a man or woman retiring today at 65 can be expected to live for another 19 or 21 years respectively in retirement on average, according to Social Security analysis (see link below for the full life expectancy calculator). So your time until retirement is only part of the story, and likely does not capture the full time horizon you have to invest. Notes: Life expectancy: https://www.ssa.gov/planners/lifeexpectancy.html Markets data: http://www.wsj.com/mdc/public/page/mdc_international.html US economic recap: http://mam.econoday.com/byshoweventarticle.asp?fid=472875&cust=mam&year=2015&lid=0#top International economic recap: http://mam.econoday.com/byshoweventarticle.asp?fid=472874&cust=mam&year=2015&lid=0#top Disclaimer: The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by FutureAdvisor. All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. Clients may lose money. Past performance is not indicative of future results. Investments in securities involve the risk of loss. Any tax strategies discussed should not be interpreted as tax advice and do not represent in any manner that the tax consequences detailed will be obtained. Clients should consult with their personal tax advisors regarding the tax consequences of investing. Your Portfolio Update Portfolio Total $9,424.65 30-Day Returns -0.6% Your Portfolio -0.7% Target Portfolio 22-Year Forecast Annualized +7.8% Your Portfolio +7.5% Target Portfolio Over the past month your portfolio was down 0.6%, and we have no recommendations at this time to improve it. Congratulations on maintaining one of the best portfolios among all our clients. We will, as always, continue monitoring your account and alerting you if there are actions to take (periodic rebalancing is required, etc). Ways To Improve Your Portfolio 0 Accounts with Actions Your portfolio has no recommended actions right now. We'll watch over your investments and alert you with an email when there are actions for you to complete. Sign in to see detailed steps Sign in to see your full dashboard If you wish to change your email settings, visit your Settings.
	FutureAdvisor | 580 Market St., Suite 500, San Francisco, CA 94104 Drop us a note anytime: advisor@futureadvisor.com