IN THE KNOW
Monthly Newsletter
October 2021
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In this month's newsletter, we have a helpful reminder about Open Enrollment for Medicare as well as an article on healthcare options if you retire before you are eligible for Medicare. We are continuing our employee spotlight and introducing you to lead partner, Stuart Vick Smith. And as usual, we are sharing helpful COVID-19 resources from our parent company, Maxwell, Locke & Ritter, and relevant investment articles and videos from Dimensional.
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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The word “Medicare” has been buzzing around for the last several weeks as we approach the Fall Open Enrollment Period specifically for Medicare. Just like employer and ACA healthcare plans, Medicare plans adhere to a variety of enrollment periods depending on the circumstances. While the Fall Open Enrollment for Medicare is meant for folks already signed up for Medicare, there may be questions surrounding signing up for Medicare in general if you are approaching the eligibility age of 65. Below are explanations for those new to Medicare, those who may wish to make changes to their plan, and those that are eligible but may still have employer coverage. No matter the coverage you currently have now is the time to review your situation and prepare or make changes.
New to Medicare?
As you or a family member approach age 65, it is important to learn the differences in Medicare A, B, and D so that you can make the best choices for you and your family. Reading this webpage or this post about Medicare basics is a great start for your research.
- For most individuals, they can enroll once they turn 65 (outside of this Fall Open Enrollment Period). Every person is eligible for an Initial Enrollment Period (IEP) that runs for seven months (three months prior to their birth month, their birth month, and then three months after their birth month)
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Many people want to retire before they are eligible for Medicare coverage at age 65, and some individuals are unfortunately getting forced into early retirement whether they like it or not. The annual Gallup Economy and Personal Finance survey has consistently revealed discrepancies in the age people think they will retire versus when they actually retire. Since 2002, the average retirement age was 62, as compared to the average anticipated retirement age of 64.
For those who retire before 65, it is important to understand what options exist to cover that gap in health care until Medicare is available. Many people underestimate the cost of paying for private health insurance, and some assume they will remain as healthy post-retirement as they were in pre-retirement years.
Premiums for private health insurance, even for just a few years, can significantly drain savings and create a financial challenge for living comfortably in retirement. With some planning ahead, however, there are a number of options available:
COBRA
The Consolidated Omnibus Budget Reconciliation Act (COBRA) generally requires that group health plans sponsored by employers of 20 or more people give prior employees and their families the choice to extend that health coverage in the event of job loss, a reduction of hours, death, divorce, and other life events.
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As more and more Baby Boomers retire and advance in age, increasing numbers of American seniors are at risk of falling victim to schemes aimed at their wealth. In fact, a recent study found that financial exploitation affects many seniors, causing losses of more than $2.9 billion¹ annually. Sadly, the losses often aren’t reported when discovered and they’re rarely recovered. Advisor, Vanessa McElwrath, spoke with KVUE Midday News to discuss this topic.
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Employee Spotlight
We are excited to spotlight employee, Stuart Vick Smith this month! Below are some fun facts to help you get to know her better! |
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Lead Wealth Management Partner
Birthday: August 4
Tell us about your family: I just celebrated my 25th anniversary with my husband Steve. We have two children - Mackenzie who is in school at Northwestern University and Whit who is in school at the University of Southern California. We have two rescue dogs - Molly and Lily
What's your favorite food? Queso, ice cream, and pizza
What's your favorite movie? Shawshank Redemption
What's your favorite book? Lonesome Dove
What are your favorite indoor and outdoor activities? Hiking, bike riding, puzzles, and reading
If you could visit anywhere in the world, where would you go? I would love to hike the Camino de Santiago one day through northern Spain.
What's your secret talent that no one knows about? I love jigsaw puzzles - in particular wooden Liberty Puzzles.
What is your favorite part of working at ML&R? The people, it is a wonderful place full of great people. We all work together and respect each and it makes every day fun.
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Recap of ML&R Hosted Event |
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This year the Department of Labor released cybersecurity guidelines and has already begun audits to ensure enforcement. On Tuesday, October 26, 2021, the ML&R Wealth Management Retirement Plan Services team hosted a webinar on Regulatory Updates & Fiduciary Best Practices. They reviewed the new guidelines and proposed legislation on the horizon. ML&R Wealth Management partner and advisor, Vanessa McElwrath, and advisor, Julie Reinhardt covered the following topics:
- Regulatory issues including DOL and IRS audits, lost participants, cybersecurity, and lifetime income disclosures
- Restating documents and common voluntary plan design changes seen in the marketplace
- Future retirement plan considerations in America
A recording of the webinar is included below. You can access the presentation by clicking here.
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By Dave Goetsch
I’ve been working in sitcom writing rooms for the past 25 years, and one of the most discussed, and least understood, topics is investing. To be in one of those rooms means that you have already beaten odds. In success, the financial benefits can be fast and huge (Google “writer” plus “nine figure deal”), but in failure, the financial misfortune can come even faster and be even more extreme.
By Dr. Zvi Bodie, President, Bodie Associates | Doug Longo, Head of Fixed Income Portfolio Strategists, Dimensional Fund Advisors
The recent surge in inflation shows how the cost of goods and services can increase quickly and unexpectedly. To help plan participants maintain a stable standard of living in retirement, plan sponsors can provide an investment solution designed to accumulate a stream of inflation-protected income using Treasury Inflation-Protected Securities (TIPS). As recent Dimensional research confirms, TIPS are the most appropriate asset to provide protection against unexpected inflation. That protection makes TIPS an ideal asset class for plan participants seeking inflation-protected income in retirement.
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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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As the novel coronavirus (COVID-19) continues to spread in the U.S. and across the world, our priority at Maxwell Locke & Ritter is the safety and well-being of our people, clients, families, and community. We are monitoring daily updates and recommendations from the CDC. Additionally, we are minimizing the impact that COVID-19 could have on our services and are staying abreast of all filing deadline adjustments. We understand that in this time of uncertainty you may have growing concerns for the financial health of yourselves and your businesses, employees and families. We have curated some helpful resources for you and will continue to update this page as new information and updates occur.
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What's Happening in Austin Next Month |
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Family-Friendly Events
Austin Pow Wow
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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 20 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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