Financial experts describe Vice President Kamala Harris’ investment style as boring, which is seen as a positive attribute in terms of avoiding financial conflicts. When Harris filed her public financial disclosure report for 2023, experts noted her preference for passively managed index funds in her investment portfolio. This approach was seen as refreshing and ethical, as it indicated that she was not trading on inside information. Carolyn McClanahan, a certified financial planner, praised Harris for investing in low-cost passive strategies, creating a clean portfolio that cannot be used to manipulate the system.
The disclosure provides insights into Harris’ financial circumstances and offers lessons for other investors. Harris and her husband, Douglas Emhoff, have a diverse but potentially excessive number of funds in their investment portfolios. Experts suggest that they consolidate their holdings to reduce any overlapping exposure. Harris’ portfolio includes foreign equities and fixed income funds, suggesting a well-diversified approach. While the disclosure also highlights multiple buy and sell transactions that may impact the couple’s tax bill, experts believe that these are likely part of routine rebalancing activities.
Harris and Emhoff reveal substantial cash holdings, which serve as a safety net and are now earning investment returns due to higher rates. However, it is emphasized that they should shop around for the best rates to maximize returns on their cash balances. The disclosure also reveals that Harris holds a 7-year adjustable-rate mortgage at a low rate, which may pose challenges when rates increase in the future. Experts recommend locking in longer-term fixed-rate mortgages when possible to avoid potential increases in mortgage payments.
In addition to their investments and mortgage, Harris also reports extra income from her royalties on books she authored, showing the importance of side hustles in contributing to household income. While not a significant sum, it serves as an example of how additional sources of income can help diversify financial resources. The disclosure also mentions that Harris received tickets to a Beyoncé concert as a gift, showcasing her personal interests outside of her financial matters. Overall, Harris’ financial disclosure paints a picture of a relatively conservative and diverse investment strategy, coupled with prudent financial decisions that may serve as a model for other investors.
Harris’ investment style aligns with her public image as a responsible and ethical leader, as evidenced by her preference for passive investment strategies and overall diversified portfolio. The disclosure highlights the importance of simplicity and consolidation in managing investment funds, as well as the need to stay informed about market trends and opportunities for maximizing returns. Harris’ financial disclosure also sheds light on her personal interests and the benefits of side income sources in contributing to overall financial health. While there may be areas for improvement, such as optimizing cash holdings and mortgage decisions, Harris’ financial approach is seen as a solid foundation for achieving long-term financial stability and success.
