IN THE KNOW
Monthly Newsletter
December 2022
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This month's newsletter we help you review your financial and year end tax planning strategies. We also explain what I-Bonds are and when to use them. Take a look at some of the team's holiday traditions, and our Dimensional Insight updates. And as always, we have a list of events and family-friendly activities that are taking place after the new year!
We are a firm that understands that managing your assets is about more than money. It is about empowering your future. At ML&R Wealth Management, we focus on you.
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As 2022 comes to a close, hopefully we can all look back with gratitude and celebrate the holidays with family and friends, knowing that things have returned somewhat back to normal (at least relative to the prior two years). Now is a good time to review your financial and year end tax planning strategies to make sure you are on track to meet your goals. While we cannot personally control things like inflation or stock market returns, it is important that we remind ourselves to focus on what we can control financially. Let’s explore several tips to help you with this.
Year End Tax Planning Strategies for 2022
If you get a raise or receive a bonus this year, consider increasing your retirement savings instead of spending it. Did you turn 50 this year? If so, take advantage of the catch-up provision. Employees aged 50 and over can defer an additional $6,500 to their 401(k), 403(b), or 457 plan in 2022, above the new $22,500 deferral limit (starting in 2023).
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With inflation at record highs this year, investors are looking for ways to keep up. We thought it might make sense to discuss whether treasury I-Bonds really help mitigate the effects of inflation.
What are Treasury I-Bonds?
Treasury I-bonds are a type of U.S. savings bond issued by the U.S. Treasury and are designed to protect your money from losing value due to inflation. The interest is paid semi-annually and is composed of a fixed rate and a variable rate. The fixed rate remains the same for the life of the bond, and the variable rate is adjusted every six months to keep pace with rising prices.
They are backed by the full faith of the U.S government and are one of the safest bond options available. You can buy them directly via the Treasury Direct website and every individual can buy up to $10,000 in treasury I-bonds per year. You can also use up to $5,000 of your tax refund to buy treasury I-bonds for a total of $15,000 as an individual, or $25,000 for a married couple. They are not marketable, meaning you can’t buy or sell them like you do other securities.
Treasury I-bonds mature in 30 years, unless you cash them in sooner. You must hold them for at least a year after purchase and redemptions are not allowed during that period. Similar to investing in a CD or other bond, your money is locked down for a certain period of time. If you choose to cash the I-bond in after the one year minimum but prior to five years, you will lose out on the previous three months of accrued interest.
Essentially, Treasury I-bonds are a safe place to store cash that you may not need for a while.
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Employee Spotlight ~ Let's Talk to the Team |
In this year's Employee Spotlight we will be asking fun questions to the entire team and sharing their answers in this section! |
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By David Booth, Executive Chairman and Founder
Technology enables immediate access to everything wherever and whenever we want it. In many cases, such as staying in touch with friends and family, or learning about world events, that’s a good thing. However, when it comes to investing and money management, my fear is that faster and easier ways of investing will allow people to lose more money faster and easier.
By Karen Umland, Senior Investment Director and Vice President
Ethan Wren, Senior Portfolio Manager and Vice President
Recent history reminds us that emerging markets can be volatile and can lag developed markets. However, emerging markets represent a meaningful piece of the global investment opportunity set. A disciplined but flexible approach, which Dimensional has used for decades, can provide the means to access the emerging markets opportunity set effectively.
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ML&R Wealth Management is Celebrating 25 Years!
1997 ~ 2022
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Subscribe to our 401(k) Plan Services Quarterly Newsletter |
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Are you responsible for administering your company's 401(k) plan?
Would you like more insight and resources regarding the retirement plan services industry?
If so, please subscribe to our 401(k) Plan Services Quarterly Newsletter. You can check out the last few issues below.
See our latest Retirement Plan Services articles:
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What's Happening in Austin Next Month |
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About ML&R Wealth Management: |
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At ML&R Wealth Management, we take investing personally. Your ML&R Wealth Management advisor will work to develop a lasting relationship with you, keeping in touch to understand your changing goals and to provide an asset management strategy to help achieve them. Whenever you need sound financial advice, you have a direct line to a trusted advisor.
For over 25 years, we have served individuals, families, businesses, and nonprofits with wealth management services, custom retirement and 401(k) plans, and portfolio management.
We believe in accountability and transparency and operate as a fee-only advisor with fees calculated solely on assets under management.
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