Monthly Newsletter
June 2020
At ML&R Wealth Management , we want to ensure our clients are In The Know.

In this month's newsletter we are sharing helpful COVID-19 resources from our parent company, Maxwell, Locke & Ritter, an article about the emotions around inheriting money, 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.

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.

Kira Scott , Wealth Management Advisor Associate

Many people speak wistfully of winning the lottery and what they would do with a sudden windfall. However, when that windfall is in the form of an inheritance, it many bring with it many unanticipated emotions. Grief takes time and adding an inheritance on makes it more complicated. It’s very common to still think of an inheritance as your loved one’s money. Inheritors also frequently speak of feeling alienated or isolated because their new-found wealth makes them feel guilty or afraid people will take advantage of them. Many feel intimidated and afraid of making mistakes with the money. After all, the person leaving the money did a lot of work to pick the investments and it may create feelings of disloyalty changing them.

Financial Wellness Q&A
In this section we will address common personal finance questions. Email  if you have a question you would like answered.

Question:  What are the tax implications one should consider when inheriting an IRA?

Answer:  Income taxes are not usually an immediate factor for those who inherit assets, as most assets get a step-up in basis to the market value on the date of death. However, inherited assets held in retirement accounts (401k, IRA, etc.) do not get a step up in basis, and any distributions taken will be taxed to the recipient.

Generally, you will likely owe taxes upon withdrawing money from a traditional IRA that you inherit. If you inherit a Roth IRA, then you can withdraw any contributions tax-free. Earnings in a Roth IRA can also be withdrawn tax-free, if the account had been open for at least five years at the time the account holder passed away.

The rules regarding taking distributions from inherited IRAs have grown more complex since passage of the SECURE Act in December 2019 and the CARES Act in March 2020. We highly recommend you consult a professional to ensure you understand the rules and can implement a tax-efficient withdrawal strategy.

Tech standouts are drawing attention for their perceived sway on stocks, but history undercuts that view.

A top-heavy stock market with the largest 10 stocks accounting for over 20% of market capitalization and a marquee technology firm perched at No. 1? This sounds like a description of the current US stock market, dominated by Apple and the other FAANG stocks, 1  but it is actually a reference to 1967, when IBM represented a larger portion of the market than Apple at the end of 2019 (5.8% vs. 4.1%).

Dimensional’s founder shares three simple strategies that investors can use to create a plan for tomorrow.

How can investors make sense of the apparent disconnect between stock market performance and economic indicators?

Do you find it puzzling when a bleak economic report emerges from the press, only to be accompanied by a positive surge in the stock market? You’re not alone. The last few weeks have produced many examples of a stark contrast between stock market performance and economic indicators. So why the apparent disconnect?

Crisis brings out the best — and worst — in people. Some dishonest people have already turned the coronavirus (COVID-19) pandemic to their advantage by preying on unsuspecting victims and exploiting their fears.
“History has shown that criminals take every opportunity to perpetrate a fraud on unsuspecting victims, especially when a group of people is vulnerable or in a state of need,” said IRS Criminal Investigation Chief Don Fort.
Here’s an overview of six COVID-19-related scams and practical advice on how to avoid them.

1. Fake Charities
When a catastrophe like COVID-19 strikes, philanthropists flock to donate cash and other assets to help relieve the suffering. But, before making a donation, be aware that opportunistic scammers may set up fake charities to benefit from your generosity.

Fake charities often use names that are similar to legitimate charitable organizations. So, be sure to do your homework before making a contribution. Donors aren’t the only victims to these scams — those in need also lose out.

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What's Happening in Austin This Month

While we know there are no in-person events for the next month, we wanted to share virtual events and activities.
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About ML&R Wealth Management:
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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