April 2015 Newsletter to Clients

Enjoy this month’s edition that features a few more reminders for tax filing season, annual updates to our ADV Brochure and a link to a Lord Abbett write-up of floating-rate funds.

Tax Returns: It is important for a financial advisor to be kept aware of their client’s ever evolving tax situation and April is a great time to forward a PDF copy of the tax return to our office for that purpose. This allows us to review the most recent data and recommend withholding adjustments, among other things, if necessary. 

Additionally, April 15 is the deadline for filing an individual federal income tax return for 2014 or requesting an extension. It is also the deadline for making contributions to retirement accounts (i.e. IRAs, Roth IRAs, and Coverdell Education Savings Accounts).

For a deposit to be eligible as a 2014 contribution, the envelope must be postmarked by Wednesday, April 15. Checks that do not include or reference a specific tax year may be applied to the current tax year (2015) contributions.

ADV Brochure: Annually we provide existing clients with an update to our ADV Brochure which highlights Material Changes in the business practices of Moneywatch Advisors, Inc. that have occurred since the prior version was published. We have included the 2015 Material Changes with this Client Newsletter. If you have any questions regarding this document please do not hesitate to contact us. We are also happy to furnish the document in its entirety, if you desire.

I would like to highlight the most notable change in the 2015 ADV Brochure; the date on which management fees are calculated. Beginning April 1, 2015 all client Management Fees will be calculated on the first business day of the month prior to the month in which the fee is due. If the fee is normally paid May 1, 2015, we will calculate the fee using values as of April 1, 2015. Again, the only change is that we will calculate the fee amount approximately two weeks earlier; fees were previously calculated on or about the 15th of the month. This will allow clients to compare the assets for which they are being invoiced to their statements from the custodian and additional time to make inquiries.

Lord Abbett: In a recent Market View write-up, Lord Abbett offers their insight on Floating-rate funds (also known as senior loan or bank loan funds) that refutes Fed and fund-flow fears. A link to the full article is available here.

Thank you for your continuing confidence.

Past performance is no guarantee of future results. The opinions expressed are those of Moneywatch Advisors, Inc. and are no guarantee of the future performance of any particular fund. This information is for educational purposes only and is not intended as investment advice. Please consult your financial advisor for more detailed information or for advice regarding your individual situation.