Monthly Newsletter
July 2019
At ML&R Wealth Management , we want to ensure our clients are In The Know. In this month's newsletter we have timely articles on Social Security & Medicare as well as questions to ask yourself as a long-term investor. 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.
Scott Adair, CFP® , Wealth Management Advisor

Older Americans have two major benefits to consider as they approach retirement age: Social Security and Medicare. Social Security is an income benefit for retirees who have worked for at least ten years and have paid Social Security taxes. Social Security was created in 1935 in the midst of the Great Depression. Medicare was created in 1965, and provides significant health coverage for Americans age 65 and older. Both Social Security and Medicare are funded by payroll taxes. Known as FICA (Federal Insurance Contributions Act), the taxes are evenly split between employees and employers. People who are self-employed pay both portions, but can deduct half of the self-employment tax from their business income.

Social Security

Social Security benefits generally replace about 40 percent of a person’s earnings, on average. While many Americans are fortunate enough to have additional sources of retirement income, Social Security benefits can still be a substantial income supplement. Social Security benefit amounts are calculated using a formula that is based on your average indexed monthly earnings over the course of your highest 35 years of earnings. You can get an estimate of what your monthly benefit will be at full retirement age from the Social Security Administration’s website ( ). Your full retirement age is determined by the year you were born. Currently, the ages range from 65 (for people born before 1938) and 67 (for people born in 1960 or later).

Whether you’ve been investing for decades or are just getting started, at some point on your investment journey you’ll likely ask yourself some of the questions below. Trying to answer these questions may be intimidating, but know that you’re not alone. Your financial advisor is here to help. While this is not intended to be an exhaustive list, it will hopefully shed light on a few key principles, using data and reasoning, that may help improve investors’ odds of investment success in the long run.

What sort of competition do I face as an investor?

The market is an effective information-processing machine. Millions of market participants buy and sell securities every day, and the real-time information they bring helps set prices. This means competition is stiff, and trying to outguess market prices is difficult for anyone, even professional money managers (see question 2 for more on this). This is good news for investors though. Rather than basing an investment strategy on trying to find securities that are priced “incorrectly,” investors can instead rely on the information in market prices to help build their portfolios (see question 5 for more on this).

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: When should I apply for Medicare and Social Security benefits?

Answer: You should sign up for Medicare on three months before your 65 th birthday, even if you are not ready to start taking Social Security retirement benefits. You can apply for Social Security at a later time, three months before you want your retirement benefits to start. Your social security benefit will increase 8% for every year you defer past your full retirement age, up to age 70.
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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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