IN THE KNOW
Monthly Newsletter
May 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 Roth IRA conversions as well as a great article from Dimensional highlighting their investment strategy. 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.
To Roth, or Not to Roth: That is the Question - A Practical Guide to Roth Conversions
Carli Smith , Wealth Management Advisor

Our role as Wealth Management Advisors is to help our clients on a holistic level. While a significant portion of this is the investment management, an additional component is the tax planning involved year in and year out. It is always our goal to help our clients manage their wealth in the most tax efficient ways possible. Among the many tax and surprisingly, estate planning strategies, one of the more powerful can be a Roth Conversion. There are many benefits to converting Traditional IRAs to Roth IRAs. There are also types of clients it makes sense for and some it doesn’t make sense for. First, let’s take a look at what a Roth Conversion is and how it works.

What is a Roth Conversion?
A Roth conversion is when money is converted from a Traditional IRA (distributions taxed as ordinary income) into a Roth IRA (distributions never taxed as long as the 5 year rule has been met). Since money in a Traditional IRA must be taxed as ordinary income upon distribution, when money is converted to a Roth IRA, it can provide long term tax savings since the Roth IRA will never be taxed (once the 5 year rule has been met). This can be an incredibly valuable tax and estate planning tool for certain clients.

What are the differences between a Traditional IRA and Roth IRA as it relates to a conversion?
There are a few important characteristics of both a Traditional IRA and Roth IRA that can help clients navigate the difference between the two as well as determine whether or not it makes sense to convert.

Implementing the Great Ideas in Finance
Dimensional Perspectives Blog

For nearly four decades, Dimensional has been combining its unique view of markets with rigorous academic research and expert implementation in pursuit of increased expected returns for investors.

Investment managers have access to the same academic studies. The difference comes down to determining what can be useful for investors and how to apply those insights in live strategies.

At Dimensional, we’ve been implementing the great ideas in finance for nearly 40 years. Our investment approach is grounded in economic theory and backed by decades of leading academic research.


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


Question: Since there is an income cap for individuals that are allowed to contribute to a Roth IRA, is there also an income cap for those who wish to do Roth Conversions?

Answer: While it is true that you cannot contribute to a Roth IRA if you make above a certain limit as an individual, there are no income limits on individuals who wish to convert money from a Traditional IRA to a Roth IRA. Anyone can open a Roth IRA and do a conversion. 
ML&R Wealth Management News
We are happy to announce that we have welcomed two new members to our team! Please meet Lauren Dockter and Rachel Roth!
Lauren Dockter is our new Administrative Associate. She helps everyone on our team so that we can in turn serve our clients' needs even better! Lauren is originally from Clide, TX but has been in the area around 10 years.

Here are few more fun facts about Lauren:

Favorite food: M&M Chocolate Chip Cookies
Favorite Vacation Spot: JW Marriott in San Antonio
Favorite Austin Restaurant: Vince Young Steakhouse
Fun Fact: Self-proclaimed comic book nerd
Rachel Roth is our newest Advisor Associate. She works with advisor, Vanessa McElwrath, on her clients' day to day needs. Rachel is originally from Houston (Clear Lake area) but has been in Austin since 2001.

Here are few more fun facts about Rachel:

Favorite Food: Steak with Mac-n-Cheese
Favorite Vacation Spot: Akumal, Mexico
Favorite Austin Restaurant: Second Bar+Kitchen
Fun Fact: She can name almost any flower you see growing around Austin
Subscribe to our 401(k) Plan Services Quarterly Newsletter

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 couple issues below.


What's Happening in Austin This Month
Family Friendly Events



Our Advisors:
Email | (512) 370-3236

Email | (512) 370-3229

Email | (512) 370-3251
Email | (512) 275-2716

Scott Adair
Email | (512) 275-2734

Email | (512) 370-3254

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.
(512) 275-2700
Website | About Us   | Services  |  Team  |  Insights  | Contact