Santa Barbara Advisor, Janet Barr, completed training with Dimensional Fund Advisors (DFA) to offer DFA Funds through LPL Financial
Santa Barbara area Advisor Janet Barr, MS, ChFC, CLU is now among a limited group of advisors nationwide offering Dimensional Fund Advisors (DFA) mutual funds through LPL Financial. DFA funds are not available directly to the retail investor and are not available through most financial advisors or registered investment representatives or their firms.
LPL Financial can now approve advisors directly to gain access to DFA funds through the Dimension Models in Model Wealth Portfolios. Advisors approved by LPL Financial will benefit from a unique educational and business support system including access to DFA’s secure website, Advisory and Brokerage Consulting Services support, marketing materials and tools and special advisor training.
Barr has been approved with LPL Financial and DFA and has completed the two-day training directly at the headquarters for Dimensional Funds in Santa Monica. Financial advisors must meet certain stringent requirements to qualify to offer DFA funds to their clients, including specific criteria in regard to the advisor’s knowledge of capital markets, experience, training, and professional credentials. Advisors seeking approval to use the dimensional models must:
• Submit a statement of using passive investment strategies
• Demonstrate focus on fee-based asset management
• Have at least one major professional designation
• Make a commitment to allocate the majority of client assets to DFA
• Have at least 25 Million in assets under management.
• Know how to integrate DFA into a practice using tools and resources sponsored by LPL Financial and DFA
For more information about DFA call (805) 965-0101 or visit www.janetbarrcfs.com.
Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.
Janet Barr, MS, ChFC, CLU
Collaborative Financial Solutions
(805)-965-0101
http://www.janetbarrcfs.com/
###
If you work in a job that’s covered by Social Security, your employer normally withholds 6.2% of your wages to pay for the Social Security portion of federal employment (Federal Insurance Contributions Act, or FICA) taxes (assessed on wages up to the taxable wage base of $110,100 in 2012). Your employer has to pay the same amount–6.2% of your wages up to $110,100 (in 2012). You and your employer also each contribute an additional 1.45% of your compensation (with no limit) for the Medicare portion of the FICA employment tax.
If you’re a self-employed individual, you have to pay both portions of each tax. Normally, that means you would pay 12.4% for the Social Security portion of your self-employment tax, and 2.9% for the Medicare portion of your self-employment tax.
Legislation in late 2010 extended multiple expiring tax provisions. The legislation also created a temporary one-year payroll tax cut in the form of a 2% reduction in the Social Security portion of the FICA employment tax. That means for 2011, if you were an employee, you paid Social Security tax at a rate of 4.2% (instead of 6.2%). If you were self-employed during 2011, you paid the tax at a rate of 10.4% (instead of 12.4%).
In late December 2011, legislation extended the 2% reduction through February 2012 to give parties time to reach a broader agreement. Subsequent discussion and compromise resulted in the Middle Class Tax Relief and Job Creation Act of 2012, signed into law on February 22, 2012. This new legislation extends the 2% Social Security payroll tax reduction once again, this time to the end of 2012.
You don’t have to do anything to get the benefit of the payroll tax deduction–the Social Security portion of your payroll tax should simply continue to be withheld at the lower rate. It’s also worth noting that the lower rate will have no effect on your future Social Security benefits.
The tax information provided is not intended to be a substitute for specific individualized tax planning advice. We suggest that you consult with a qualified financial planner.
Securities offered through LPL Financial, Member FINRA/SIPC
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2012.
As 401(k) plans have become more popular, plan participants have become increasingly responsible for making their own retirement savings decisions. The Department of Labor (DOL) has become concerned that participants in self-directed 401(k) plans (those that allow participants to direct the investment of their own accounts) might not have access to, or might not be considering, information critical to making informed decisions about the management of their accounts–particularly information on investment choices, fees, and expenses.
As a result, in October 2010, the DOL issued new regulations that require self-directed 401(k) plans to provide detailed information to participants about the plan and its investments, on a regular and periodic basis, so that participants can make informed investment decisions. Some information must be provided on an annual basis, and some information must be provided quarterly. For most plans, the initial annual disclosure must be furnished no later than August 30, 2012. The first quarterly statement must be furnished no later than November 14, 2012 (for July through September).
What’s changing?
If you’re currently participating in a 401(k) plan, chances are you’re already receiving similar information as a result of an earlier set of DOL regulations. However, employer compliance with the older regulations was voluntary, whereas the new disclosure rules are mandatory for all self-directed 401(k) plans. Even participants in plans that previously complied with the earlier disclosure rules will see some changes when the new regulations take effect. For one, you’ll receive more detailed information about investment fees and expenses. Another change is that plan investment information must be provided in a chart, so that you’ll be better able to compare investment alternatives. And plans will no longer be required to automatically provide a prospectus, although one must be provided if you request it.
Which plans do the new rules apply to?
These new disclosure rules apply to 401(k) plans and other plans that allow participants to direct their own investments, but they do not apply to IRAs, SEPs, or SIMPLE IRA plans. They also do not apply to plans that are not covered by the Employee Retirement Income Security Act of 1974 (ERISA), including governmental plans, owner-only plans, certain 403(b) plans, and certain church plans.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
The tax information provided is not intended to be a substitute for specific individualized tax planning advice. We suggest that you consult with a qualified tax advisor.
Securities offered through LPL Financial, Member FINRA/SIPC
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2012.
