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What Kamala Harris’ financial disclosure reveals about her investments

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US Vice President and Democratic Presidential candidate Kamala Harris delivers keynote speech at Zeta Phi Beta Sorority, Inc.’s Grand Boulé event at the Indiana Convention Center in Indianapolis, Indiana, on July 24, 2024. 

Brendan Smialowski | AFP | Getty Images

Financial experts describe Vice President Kamala Harris‘ investment style in one word: Boring.

For a woman seeking the highest office in the U.S., it also means she is relatively free of financial conflicts.

In her role as vice president, Harris filed a public financial disclosure report for 2023, which was signed in May. It reveals she favors passively managed index funds in her investment portfolio.

“For me, it was quite refreshing that it appears to be very passive,” said Dustin Thackeray, a chartered financial analyst and chief investment officer at Crewe Advisors in Salt Lake City, who reviewed Harris’ disclosure.

“She’s definitely not attempting to trade on any inside type of information,” Thackeray said.

Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida, who also reviewed Harris’ financial disclosure, said it makes her “heart sing” to see Harris investing in low-cost passive investment strategies.

“To me, she has the cleanest portfolio you’ll see in a politician,” said McClanahan, who is also a member of the CNBC Financial Advisor Council.

“She owns a bunch of index funds; there’s no way she that she can game the system,” McClanahan said.

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Harris’ disclosure comes as members of Congress are debating whether elected leadership should be restricted on the kinds of investments they can own.

A group of senators is pushing for a bill that would prohibit members of Congress — as well as their spouses and dependents — from buying certain investments like individual stocks, as opposed to diversified investment funds or Treasury securities. While a Senate panel voted this week to approve the bill, it’s unclear whether it will eventually become law.

In addition to Harris’ favoring of passive investments, the disclosure also reveals more about her financial circumstances that may hold lessons for other investors, according to experts who reviewed the document.

Too many funds

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McClanahan also said the couple could reduce the number of funds they own.

“They could consolidate, keep it simpler,” she said.

The portfolio includes allocations to foreign equities and fixed income funds, said Thackeray, who has been encouraging his own clients to consider more foreign investment exposure. There may be less expensive opportunities outside the U.S., he said, where investments have become more expensive in recent years.

While Harris’ disclosure lists a lot of buy and sell transactions over the year, mostly for lower dollar ranges, that may just be the result of quarterly rebalancing activity, Thackeray said.

How much impact those transactions have on the couple’s tax bill depends on whether those trades are happening inside or outside of their retirement accounts.

It’s unclear whether Harris and Emhoff work with a financial advisor. Harris’ office declined to comment.

Cash on the sidelines

Harris and Emhoff also reveal cash holdings that may add up to around $850,000 or more, depending on the exact balances based on the ranges given.

Having such a large cash pool as a safety net is common among his clients today, Thackeray said.

“The good thing about cash balances today is that they are actually making an investment return, where they hadn’t for many, many years prior to higher rates,” Thackeray said.

Yet because it is up to investors to shop around for the best rates, it’s not a guarantee that Harris and Emhoff are earning the best returns possible.

“I hope all that cash in the bank is earning attractive interest,” Glassman said.

Adjustable-rate mortgage

Harris lists a 2020 mortgage at a 2.625% rate for a personal residence ranging between more than $1 million to $5 million.

But the catch is it is a 7-year adjustable-rate mortgage, which means that low rate won’t last. Adjustable-rate mortgages typically offer an initial fixed interest rate that expires after a certain period of time, and then changes annually.

Since 2020, mortgage rates have increased substantially, which means the couple missed their chance to lock in a low rate for a longer term.

McClanahan said she urged everyone to lock in the record low mortgage rates that were available back then.

“Personally, I would have locked in a longer-term mortgage at that time,” Thackeray said.

While the couple may be in for a shock in 2027, they can always refinance or pay off the mortgage, McClanahan said.

It is possible mortgage rates may be lower in 2027 than where they are today, Thackeray said.

Extra ‘side gig’ income

Beyoncé tickets

Harris is using Beyoncé’s “Freedom” as her campaign song.

Yet Harris was a Beyoncé fan well before the recent pick of that song, her latest financial disclosure reveals. In 2023, Harris was gifted tickets valued at more than $1,600 to a Beyoncé concert. The source listed for that gift: Beyoncé Knowles-Carter.

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Student loan forgiveness plans withdrawn by Biden administration

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U.S. President Joe Biden delivers remarks during the Tribal Nations Summit at the Department of the Interior in Washington, D.C., U.S., December 9, 2024. 

Elizabeth Frantz | Reuters

The Biden administration has withdrawn two major plans to deliver student loan forgiveness.

The proposed regulations would have allowed the U.S. Department of Education secretary to cancel student loans for several groups of borrowers, including those who had been in repayment for decades and others experiencing financial hardship.

The combined policies could have reduced or eliminated the education debts of millions of Americans.

The Education department posted notices in the Federal Register last week that it was withdrawing the plans, weeks before President-elect Donald Trump enters the White House.

The Education department did not immediately respond to a request for comment.

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“The Biden administration knew that the proposals for broad student loan forgiveness would have been thwarted by the Trump administration,” said higher education expert Mark Kantrowitz.

Trump is a vocal critic of student loan forgiveness, and on the campaign trail he called President Joe Biden’s efforts “vile” and “not even legal.”

Biden’s latest plans became known as a kind of “Plan B” after the Supreme Court in June 2023 struck down his first major effort to clear people’s student loans.

Consumer advocates expressed disappointment and concern about the reversal on debt relief.

“President Biden’s proposals would have freed millions from the crushing weight of the student debt crisis and unlocked economic mobility for millions more workers and families,” Persis Yu, deputy executive director and managing counsel of the Student Borrower Protection Center, said in a statement.

Student loan forgiveness still available

“There are so many borrowers concerned about the impact on the new administration with their student loans,” said Elaine Rubin, director of corporate communications at Edvisors, which helps students navigate college costs and borrowing.

For now, the Education department still offers a wide range of student loan forgiveness programs, including Public Service Loan Forgiveness and Teacher Loan Forgiveness, experts pointed out.

PSLF allows certain not-for-profit and government employees to have their federal student loans cleared after 10 years of on-time payments. Under TLF, those who teach full-time for five consecutive academic years in a low-income school or educational service agency can be eligible for loan forgiveness of up to $17,500.

The Biden administration announced Friday that it would forgive another $4.28 billion in student loan debt for 54,900 borrowers who work in public service through PSLF.

“Many borrowers are particularly concerned about the future of the PSLF program, which is written into law,” Rubin said. “Eliminating it would require an act of Congress.”

At Studentaid.gov, borrowers can search for more federal relief options that remain available.

Meanwhile, The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state.

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Here’s what you need to know before investing in bitcoin ETFs

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Fernando Gutierrez-Juarez | Picture Alliance | Getty Images

It has been a banner year for spot bitcoin exchange-traded funds, with some of the biggest asset managers introducing ETFs that hold the flagship digital currency. But there are things to consider before adding these ETFs to your portfolio, experts say.  

The U.S. Securities and Exchange Commission approved the first spot bitcoin ETFs in January. Earlier this month, the 12 spot bitcoin ETFs collectively surpassed $100 billion in assets under management, marking one of the most successful ETF launches in history.

Bitcoin ETFs give investors a “traditional way to buy an untraditional asset,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York.

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Here’s a look at other stories offering insight on ETFs for investors.

Despite recent volatility, the price of bitcoin was still up nearly 120% year to date, as of Dec. 20, fueled in part by the pro-crypto policy proposed by President-elect Donald Trump.  

There is a lot of upside potential, said Boneparth, who is also a member of CNBC’s Financial Advisor Council. But there is typically a “tremendous amount of volatility” compared to traditional asset classes.

If you are still ready to buy bitcoin ETFs, here’s what to consider.

Advisors remain ‘cautious’ about bitcoin ETFs

“Most advisors are still relatively cautious about using these [bitcoin ETFs] with their clients,” said Amy Arnott, a portfolio strategist with Morningstar Research Services.

To that point, some 59% of financial advisors are not currently using or discussing cryptocurrency with their clients, according to a survey released in June from Cerulli Associates. The survey polled 271 advisors during the first quarter of 2024, when the price of bitcoin was lower.  

Follow a ‘rebalancing policy’

If you are eager to add bitcoin ETFs to your portfolio, Arnott suggests keeping your allocation small — around 2% to 3%, maximum — and rebalancing regularly.

Your allocation should be based on your goals, risk tolerance and timeline. Without rebalancing, a ballooning bitcoin ETF position could have a “drastic impact on the overall portfolio’s risk profile,” she said.

It’s good to rebalance on a regular schedule, quarterly at a minimum, or even monthly…

Amy Arnott

Portfolio strategist with Morningstar Research Services

You can follow a “rebalancing policy” by trimming profits whenever your bitcoin ETF allocation exceeds a predetermined percent of your portfolio, Arnott said. That requires regular monitoring.

“It’s good to rebalance on a regular schedule, quarterly at a minimum, or even monthly” for volatile assets such as bitcoin, she said.

Consider your timeline

Like other investments, it is important to consider your goals and timeline before adding bitcoin ETFs to your portfolio, Arnott said.

Similar to stocks, Morningstar’s portfolio framework recommends holding bitcoin and other cryptocurrencies for at least 10 years due to volatility, periodic drawdowns and crypto winters.

“It’s not a good place to be if you’re saving for a down payment on the house in a few years,” Arnott said.

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What tariffs could mean for car prices

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Professionalstudioimages | E+ | Getty Images

President-elect Donald Trump has been vocal about potentially raising tariffs on imported goods, which experts say could bump up car prices.

Trump has talked about implementing an additional 10% tariff on Chinese imported goods, as well as adding tariffs of 25% on all products from Mexico and Canada. On Friday, Trump told the European Union it must reduce its trade gap with the U.S. by purchasing oil and gas, or it could face tariffs as well.

Tariffs are taxes on imported goods, paid by U.S. companies that import those goods.

Tariffs have the potential to disproportionately affect auto prices because materials used to assemble a vehicle come from different parts of the world. Some components even cross U.S. borders multiple times before they even get to the factory, according to Ivan Drury, director of insights at Edmunds.

“There’s no such thing as a 100% American vehicle,” said Drury. “There’s so much complexity, even though it’s a seemingly straightforward thing.”

Component tariffs could add $600 to $2,500 per vehicle on parts from Mexico, Canada and China, according to estimates in a Wells Fargo analyst note. Prices on vehicles assembled in Mexico and Canada — which account for about 23% of vehicles sold in the U.S. — could rise $1,750 to $10,000.

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If tariffs are enacted, the sticker price drivers pay at the dealership will eventually go up, experts say. But carmakers and sellers may have to bear some of the costs, too. 

“The cost will spread across all stakeholders: automakers, dealers and consumers,” said Erin Keating, executive analyst at Cox Automotive. “No one company is going to dump all of that expense directly on their consumers.” 

Here’s what to know.

Why cars may incur more tariffs than other goods

The automotive sector’s supply chain is unique because some pieces move back and forth across international borders while the part is built and assembled, experts say.

“People don’t really know where their vehicle is built and how it’s assembled from parts across the entire globe,” Drury said.

Take a steering wheel, for example. Electronic sensors or other parts that go into the steering wheel come to the United States for assembly from countries like Germany, Drury said. The steering wheel is then sent to Mexico for stitching, only for it to come back to the U.S. to be installed in the vehicle.

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Vehicles could have “incrementally more tariffs applied” compared with other products, given the supply chain, said Keating.

If tariffs add to the manufacturing cost, automakers can’t risk passing on the entire tab to the shopper, experts say.

Carmakers and dealers may have to “bear some of the burden,” Drury said. “If you look at how expensive vehicles could get with those tariffs, there’s no way they’re going to be able to move as many [cars].”

There is, however, a silver lining — a lot of cars that will be on the lots in early 2025 have already been assembled or are currently being made, further adding to next year’s available supply, Keating said.

What car shoppers can expect in 2025

As of December, average auto loan rates for new cars are at 9.01% while borrowing costs for used vehicles are at 13.76%, per Cox Automotive. The average rates for both types of loans are down about a full percentage point from a 24-year high earlier this year.

“We expect that consumers may see even lower rates by spring, which would create the most normal and favorable buying environment since 2019,” Jonathan Smoke, chief economist at Cox Automotive, wrote in the report.

For now, experts are optimistic for the auto market next year as inventory and deal opportunities grow.

“Tariffs or no tariffs, there will be more incentives,” Drury said.

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