IN THE KNOW
Monthly Newsletter
May 2022
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In this month's newsletter, we have informative articles explaining what being a fiduciary means and why high-net-worth families should apply for FAFSA. We are excited to celebrate the 1-year anniversary of advisor, MaryBeth Meyer. In this month's employee spotlight our team shared the best advice they've ever received in this. And as usual, we are sharing relevant investment articles and videos from Dimensional. Read on to learn about all of this and more!
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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When you’re deciding on a financial advisor to help you manage your investments or plan for retirement, it can be confusing to know the differences between the various titles and credentials a financial professional holds. You may have been advised to find a fiduciary financial advisor. But what does that actually mean?
The term “fiduciary” originated from the Latin word “fidere”, meaning “to trust”. In simplest terms, a fiduciary is someone who acts on behalf of another person, putting the interest of the other party ahead of their own. In this context, it refers to a financial advisor having a fiduciary duty to act in the best interest of a client and to disclose any potential conflicts of interest.
What Is a Fiduciary Duty?
A Fiduciary is held to the highest standard and are expected to always carry out the following core duties, according to the CFP Board’s Standards of Conduct:
- Duty of Loyalty – Act in the client’s best interest; avoid any conflicts of interest
- Duty of Care – Act with care, skill, prudence, and diligence
- Duty to Follow Client Instructions – Comply with all terms of engagement and all reasonable and lawful directions of the client
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My daughter is wrapping up her sophomore year in high school. Words like SAT, ACT, AP exams, dual credit, college counselors, campus tours and FAFSA are starting to creep into our daily conversations when planning for these last few years of high school. One of the most common questions we get when meeting with our clients who have children entering college is whether or not they should complete the FAFSA.
What is the FAFSA?
FAFSA stands for Free Application for Federal Student Aid. It is a free form submitted to the Department of Education to apply for federal financial aid to pay for college. It is also used by many states and public and private colleges to determine your eligibility for additional aid in the form of loans, scholarships, and grants.
When completing the FAFSA, not all assets are reportable. Non reportable assets include qualified retirement plans, including 401(k), Roth 401(k), 403(b), IRA, Roth IRA, Simple SEP, Keogh, profit sharing and pension plans. Your primary residence is also non-reportable along with personal possessions such as household goods, furniture, electronics, appliances, cars, boats and other personal possessions. Small businesses that have less than 100 full time employees that are owned by the family are also excluded from the FAFSA.
The government uses the information from the FAFSA to determine your expected family contribution (EFC). The EFC is calculated based on a formula and is the number used by each school to determine how much financial aid you are eligible to receive. Your financial need is calculated by subtracting the EFC from the cost of attendance.
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MaryBeth Meyer Celebrates 1 Year with ML&R Wealth Management! |
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MaryBeth Meyer joined us in 2021 and brought over 15 years of experience in financial planning and wealth management to our company. Her specialty is helping clients with complex financial topics in areas such as asset management, tax, insurance and estate planning in order to create strategies for success. Below we share more information about MaryBeth and her experience.
WHAT IS YOUR BACKGROUND AND WHAT ATTRACTED YOU TO ML&R WEALTH MANAGEMENT?
When I think back, I realize I’ve always been interested in finance. From reading investment books at the library with my dad and opening a Roth IRA at the age of 16, to creating a piggy bank in carpentry class, I had a knack for saving! I followed my interests for financial planning and have now been in the industry over 15 years. At ML&R Wealth Management, the investment philosophy matches my own, and the firm has given me the tools to support and grow our client base. Our affiliate, Maxwell Locke & Ritter, offers additional services, like tax planning and preparation, audits, quality of earnings reports, SOC examinations, and more. At ML&R, we have the resources available for me to expand my skills, grow my practice, remain true to my clients, deepen my connections, and serve the community. I am fortunate to have joined an organization with goals and values that align with my own.
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Upcoming Webinar: Navigating a Turbulent Market
We are pleased to announce that we are hosting a live webinar on Tuesday, May 31st at noon with Apollo D. Lupescu, PhD. Apollo is a highly regarded speaker from Dimensional Fund Advisors, a premier global investment firm managing over $650 billion in assets for institutional investors and clients of select financial advisors. Apollo has the unique ability to convey the technical aspects of investing in a manner that is understandable and relatable to investors of various levels of financial acumen.
Hear unique insights on topics such as:
• is it the right time to invest during volatile markets and significant geopolitical events?
• Fed interest rate changes and impact on stocks and bonds;
• bond investing during historical low interest rates;
• inflation considerations;
• market downturn mitigation strategies;
• the disconnect between the market and the economy;
• perspectives on investing in the big, dominant tech stocks;
• context on the coronavirus crisis and forward perspectives;
• the role of diversification in international, small cap and value stocks.
Questions from the audience are encouraged throughout the session and will be answered by the speaker.
Tuesday, May 31
12:00 – 1:00 p.m.
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Employee Spotlight ~ Let's Talk to the Team |
In the Employee Spotlight section we will be asking fun questions to the entire team and sharing their answers in this section! |
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ML&R Wealth Management is Celebrating 25 Years! |
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By Robert C. Merton, PhD, Nobel Laureate and Resident Scientist at Dimensional
Around the world, individuals are being asked to take on greater responsibility for their own retirement. In the US, for example, a combination of limited Social Security funding and a reduction in the number of defined benefit (DB) employer plans—historically, the primary retirement savings vehicle for many—is causing investors to make decisions they have never had to face about how to save for retirement.
By Kaitlin Simpson Hendrix, Senior Researcher and Vice President | Trey Roberts, Associate, Research
On May 4, the US Federal Reserve increased the target federal funds rate1 by 50 basis points as part of what the central bank said will be a series of rate increases to combat soaring inflation in the US. Some investors may worry that rising interest rates will decrease equity valuations and therefore lead to relatively poor equity market performance. However, history offers good news: Equity returns in the US have been positive on average following hikes in the fed funds rate.
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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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