Moneta Appoints Accomplished Industry Professional Matthew Harlan as Director of Trust Services for Moneta Trust

Company fuels growth and development of Moneta Trust with Harlan who brings decades of trust experience

ST. LOUIS — Oct. 28, 2021 — Moneta, a 100% partner-owned and fee-only firm offering advisory services through its registered investment advisor (RIA) Moneta Group Investment Advisors, LLC, has hired Matthew Harlan as Director of Trusts and Family Office for Moneta Trust. In this role, Harlan is charged with the growth and success of Moneta Trust, which provides clients with the convenience of having all aspects of their financial planning coordinated by one firm.

Bringing nearly 30 years of experience to the team, Harlan will oversee and help transition the firm’s trust accounts for Moneta Trust, which launched in May. Additionally, he will work with Partners and Advisors throughout the firm to offer this resource to existing and prospective Moneta clients who are considering utilizing Moneta Trust. Harlan’s responsibilities will also include cultivating and implementing a long-term plan to ensure the continued expansion of Moneta Trust’s client base and service offerings.

“I was thrilled by the offer to get in on the ground floor of Moneta’s new trust company,” said Harlan. “I felt immediately drawn to Moneta’s client-first culture and work environment. In this role, I want to continue my lifelong work of building connections with partners and clients. Trusts can be very technical, but it’s ultimately a relationship business and I’m excited by the challenge to help expand Moneta Trust.”

Prior to joining Moneta, Harlan worked with high-net-worth families for 19 years at The St. Louis Trust Company, six years at Bank of America Private Bank and four years at Mark Twain Bank Trust Division. His key responsibilities included trust administration, estate planning, investment/asset allocation, cash flow and tax planning.

“Matthew has a breadth of experience in the trust business proving him to be a valuable asset to both advisors and clients. As a proven leader in sustainability and passing business from one generation to the next, expanding Moneta Trust with key industry players was the obvious next step for Moneta,” said Corey Then, General Counsel of Moneta. “Matthew’s track record in the business brings us confidence that he will expertly lead our trust company while strengthening client relationships.”

Harlan will be based at Moneta headquarters in St. Louis. Previously, he attended St. Louis University, receiving his bachelor’s degree in 1992 and MBA in 1995. He also holds the CTFA and CFP® certifications and is a member of the Estate Planning Council of Greater St. Louis.

About Moneta

Moneta Trust is chartered pursuant to Kansas statutes as a non-depository retail trust company and regulated by the Kansas Office of the State Bank Commissioner. Moneta Trust is a wholly owned subsidiary of Moneta Holding Corp., which itself is a wholly owned subsidiary of Moneta Group, LLC.

Advisory services are offered through Moneta Group Investment Advisors, LLC, a registered investment advisor with nearly $27.4 billion in assets under management, headquartered in the Midwest. Barron’s ranked Moneta among the nation’s Top 10 Independent RIAs in 2017, 2018, 2019, 2020 and 2021 for its combination of quality and scale. InvestmentNews ranked Moneta among the nation’s Top 10 largest fee-only RIAs for the fourth-straight year in 2021.

The firm consistently earns praise for the way it invests in and takes care of employees. In 2021, InvestmentNews ranked Moneta among the nation’s “Best Places to Work for Financial Advisers” for the third year, the St. Louis Post-Dispatch ranked Moneta among its “Top Workplaces” for the eighth-straight year and the St. Louis Business Journal named Moneta as one of its “Best Places to Work” for a seventh-straight year.

CONTACT

Gregory FCA for Moneta
Chandler Kuck, 239-302-7464
moneta@gregoryfca.com

© 2021 Moneta Group Investment Advisors, LLC. All rights reserved. Moneta Group Investment Advisors, LLC is an SEC registered investment advisor and wholly owned subsidiary of Moneta Group, LLC.  Registration as an investment advisor does not imply a certain level of skill or training. Moneta is a service mark owned by Moneta Group, LLC.

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What kind of life insurance do you need and how much?

By Sean Follis, Moneta Advisor

Life insurance can be a critical component of your financial plan. This article will explore how to measure the amount of life insurance you need along with the different types of life insurance policies and how you might use them.

Generally, we view life insurance as a risk management tool and not part of an investment portfolio. From this perspective it is important to have enough insurance to cover your risks, but it can be expensive to have excess coverage.

What are some risks we often face for which life insurance is a good solution?

It can be a great tool to replace your income, especially early in your career. You may have a debt or obligation that you want to make sure is taken care of in the event of your untimely demise. Life insurance can also be a powerful estate planning tool.

So how do I know how much coverage I need?

 There are rules of thumb, but these estimates often miss the mark. We recommend reviewing your coverage needs alongside comprehensive financial planning where you may be estimating your retirement needs, college planning needs among other objectives. Essentially, you are calculating how much capital your family needs “today” to meet all your financial goals and objectives. Early in your career, this can be a substantial amount. As you approach retirement or accumulate wealth, the amount may go to zero. This is where generalizations or rules of thumb tend to fall short because everyone’s goals end up being unique.

Now that you understand the big picture behind estimating how much life insurance you need, how do you accomplish it?

One solution is to speak with your Moneta advisor; they can help you with this conversation. There are also many online retirement calculators available. Calculators that account for volatility in investment returns can be especially useful so long as a realistic expected return rate leaning towards conservative estimates is used. When using a retirement calculator, you will solve for the lump sum investment you would need to make today. You may need to increase your current investment holdings until you find the amount that fulfills your goals.

What kind of life insurance do you need?

There are two broad life insurance policy types: term coverage and permanent coverage. Each comes with many different product options available.

The simplest life insurance policy type is term coverage. With term life insurance, you make a premium payment and – as long as the policy premiums have been paid – the insurance company will pay the death benefit to your beneficiaries at your death. If the policy has expired when you die, there is no benefit paid to your beneficiaries and no residual value. Term coverage is similar to car insurance. If you have a car accident and your coverage is in-force, the insurance company will pay the claim.

Permanent life insurance comes in a few different flavors (like ice cream). These policy types have one thing in common: a portion of your premium accumulates, creating cash value in the policy that will earn interest so the value grows over time. The idea behind permanent coverage is to build up cash value while you are young and the cost of insurance is low; then, when you are older and the cost of insurance is much higher, the cash value reduces the amount of coverage you need. Basically, you are buying a policy today (usually with a level premium amount) and it will last the rest of your life as long as you continue making premium payments. Since your premiums are covering both the cost of insurance and accumulating future cash value, the premiums are much higher compared to term coverage for the same death benefit. There are many nuances to permanent life insurance policies that we are not addressing in this article.

Which policy do you use?

Like everything in personal finance, it depends on your goals and objectives. If you are early in your career and need a substantial amount of coverage (maybe providing for a family of four) term coverage will be the most cost effective. Most term insurance buyers will lock in a level premium for a guaranteed period of time (5, 10, 15, 20, 30-years) that matches well with the length of their risks. You can purchase multiple policies, so the total amount of coverage declines over time. Permanent coverage is most useful if you have a minimum amount of coverage that never goes away regardless of the assets you accumulate. As you age, purchasing term insurance becomes very expensive and declining health may prevent you from qualifying for coverage. If you think you will need coverage later in life, having some permanent coverage is probably a good idea.

Reviewing your life insurance plans is a great idea every few years, especially if you have experienced major life changes. Your Moneta advisor can help you evaluate your life insurance plans to make sure it meets your needs and recommend any changes. If you are currently considering changes to your life insurance policies, your Moneta advisor can also give you a second opinion to ensure the changes will meet your goals.

©2021, Moneta Group Investment Advisors, LLC. These materials have been prepared for informational purposes only based on materials deemed reliable, but the accuracy of which has not been verified. Past performance is not indicative of future returns. You cannot invest directly in an index. These materials do not constitute an offer or recommendation to buy or sell securities, and do not take into consideration your circumstances, financial or otherwise. You should consult with an appropriately credentialed financial professional before making any decision.

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Ask the CFP: How much umbrella insurance do I need?

Hello everyone and welcome to this month’s Ask the CFP segment. This month’s question is, “how much umbrella insurance do I need?” As recap, umbrella liability policies are insurance policies that go above and beyond the insurance you may already have in place for your vehicles, homes or watercraft. So why would someone want additional insurance beyond their existing policies?

Let’s say you cause a car accident on the highway and six vehicles are involved. If multiple people face injuries, you could be at fault for a hefty amount of bodily injury liability claims. Medical helicopter rides can be tens of thousands of dollars alone. I know this from personal experience. If your auto insurance policy only covers 250,000 dollars per person and 500,000 dollars per accident, but your collision brings about an 800,000 dollar liability judgement, your personal assets may be at risk. This is why many people use umbrella policies.

Aside from bodily injury liability protection, umbrella policies may also cover defense costs in a malicious prosecution, false arrest, libel or slander. They often cover family members living in your household too, such as a teenager that drives a covered vehicle. Speaking of teenagers, if yours throws a party in your home while you’re out of town and you’re sued after someone falls down the stairs, your umbrella policy may protect you from that unfortunate accident.

The smallest benefit amounts for umbrella policies are generally 1 million dollars. That may sound like a lot of coverage, but you may be surprised to learn they often cost hundreds of dollars per year in premium, not thousands. So how much umbrella protection does someone need? If your net worth is 2 million dollars and you’re held liable for a large judgement and defense costs of 3 million dollars, then a 1 million dollar umbrella isn’t going to protect you. Affluent families may need umbrella coverage greater than their net worth. After all, lawsuits typically occur when plaintiffs feel they can sue someone that has wealth. Otherwise, why sue someone who has no wealth and likely low levels of insurance?

Determining how much umbrella coverage to secure involves looking at your net worth, but also considering how likely you are to be held liable for outsized judgements. For example, judgements can vary widely based on the circumstances, but judgements of 10 million dollars or more tend to be less common than judgements of around 1 million dollars. Also, some of your assets may already have protections in place such as ERISA protection on retirement plans such as 401(k)s or business interests in LLCs. Therefore, it’s less about using your total net worth for this calculation and more about using your net worth that’s likely at risk from a lawsuit.

Overall, this may help you come closer to the amount of umbrella liability protection you may need. It’s different from person to person and even from state to state based on different laws, so speak with a professional to understand where you may be at risk and how to protect your family. If you have a question about this topic or have a question for next month’s video, please send it to Dtroyer@monetagroup.com. Thanks for watching and we’ll see you next month.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Please speak with a qualified tax or legal professional before making any changes to your personal situation.

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Booming Housing Market: Fundamentally Driven or Peak Mania?

Authors:

• Randy Stauder, Portfolio Strategist
• Tim Burford, Investment Specialist

Words such as “bubble” and “peak” are being used to describe today’s residential real estate market. To put it simply: the housing market has been red hot since the end of April 2020. It is common to hear about all-cash offers or buyers waiving inspection contingencies, among a host of other tactics used to sweeten purchases. While the COVID-19 pandemic provided a unique catalyst for the residential real estate market, most would agree that there are a handful of forces which influence the housing market with supply and demand at the top of the list.

Supply

During the two-month period of March and April 2020, residential real estate collapsed alongside the sharpest economic downturn in modern history. Uncertainty was abundant for investors and homeowners alike. The supply of houses for sale, however, was far from abundant. As the world shut down in an attempt to slow the spread of COVID-19, countless jobs were lost or furloughed and many homeowners were hesitant to sell. Homeowners were also reluctant because selling meant they would be a buyer in the same challenging market. Additionally, many households had the opportunity to refinance their mortgage rather than sell given historically low interest rates, which further limited the supply of homes.

The new-build segment of the housing market also faced tremendous disruption. In a segment that many believe did not keep up with demand after the end of the Great Financial Crisis in March 2009, housing development faced an entirely new set of obstacles. Laborers were required to stay home, and construction sites halted. Once stay-at-home orders were lifted, labor shortages and supply chain issues followed. These factors triggered unprecedented spikes in building costs. For example, the price of lumber soared to more than three times previous record highs. Builders, retailers, and others worried about running out of materials and in turn hoarded the supply they had on-hand. Builders raised home prices to maintain their margins, and many stopped selling houses before the studs were installed to avoid misjudging costs and losing money. Paired with the countless other material bottlenecks and an already short supply of land, new home prices were primed to jump, regardless of the demand, if builders were to earn a profit.

Demand

The housing market has rarely, if ever, been this competitive. Bidding wars are common, and listings in some areas sell within a matter of days. As COVID-19 forced businesses and schools to close their doors, the shift to remote work and learning happened overnight. Suddenly, the whole family found themselves at home all day, sending buyers scrambling to find bigger homes for both work and play. Location and commute became an afterthought, particularly in larger cities, as buyers cared more about space than proximity.

The Federal Reserve acted swiftly and cut interest rates to help stabilize the economy. Already historically low mortgage rates declined further, and the average 30-year mortgage rate decreased from 3.65% in March 2020 to 2.67% by the end of the year[1] thus giving many homebuyers more buying power than ever before.

Conversely, high list prices and “sticker shock” caused some homebuyers to pause during the first half of 2021. Existing home sales declined for five straight months beginning in January 2021. They slightly increased in June 2021 but only by 1.4%[2].  Nevertheless, demand, as measured by purchase mortgage originations (see Figure 1), remains robust.

Today, the housing market remains a far cry from normal. Supply is 30% lower compared to a year ago[3], while demand has only shown brief signs of moderating. Given this severe imbalance, home values have increased in virtually every corner of the nation at a pace rarely seen before. The average home value continues to set all-time highs, which inevitably leads some to wonder if the housing market is due for a correction. While possible, many factors contributing to the boom still persist and future demand should be supported by long-term tailwinds.

Where could it go from here? 

Buyers appear to be in great financial shape, as consumer balance sheets have seldom looked better. On average, U.S. consumers are now spending less on debt payments as a percentage of disposable income since the beginning of 1980 (see Figure 2). Because mortgage payments make up the largest portion of a household’s annual expenses[4], lower mortgage rates have helped homebuyers maintain their purchasing power even as home prices continue to rise.

A greater tailwind is the millions of millennials entering their thirties, the prime age for first-time home buyers. Many millennials not affected by layoffs/furloughs accumulated sufficient savings through stimulus checks, student loan forbearance, and far less spending on discretionary items to use towards a down payment. This new generation of homebuyers, the largest generation as a percentage of the entire U.S. population[5], will likely increase demand for years to come.

Today’s housing market looks to be on much firmer ground compared to 2007 – the only period on record (dating back to 1975) in which the entire U.S. housing market experienced a simultaneous downcycle – particularly in terms of fundamentals (i.e., healthier borrowers and lenders). A flood of new supply (both from sellers and builders) could cause home prices to cool off or even correct, but a systemic crisis on the scale of the Global Financial Crisis appears less likely today.

© 2021 Moneta Group Investment Advisors, LLC. All rights reserved. Moneta Group Investment Advisors, LLC is an SEC registered investment advisor and wholly owned subsidiary of Moneta Group, LLC. Registration as an investment advisor does not imply a certain level of skill or training. Moneta is a service mark owned by Moneta Group, LLC.  The information contained herein is for informational purposes only and is not intended to be comprehensive, exclusive, nor represent any recommendation.

[1] Freddie Mac: “30-Year Fixed Rate Mortgage Average in the United States” retrieved from FRED.org (August 19, 2021)

[2] National Association of Realtors: “Existing Home Sales Expand 1.4% in June” (July 22, 2021)

[3] YCharts.com: “US Existing Home Months’ Supply” (August 19, 2021)

[4] Bureau of Labor Statistics: “Consumer Expenditures – 2020” (September 9, 2021)

[5] Statista: “Population Distribution in the United States in 2020, By Generation” (August 19, 2021)

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Moneta in the News: September 2021

As we officially say goodbye to summer and hello to fall, our team members have been busy sharing their expertise with a variety of news outlets throughout the month of September.

Below, we’ve compiled a recap of the month’s media highlights:

Financial Advisor Magazine: Tax moves advisors should be making before year’s end

• CPA, CFP® and Partner Kara Harmon shared her perspective on helping clients navigate the changing tax landscape. Kara explained the importance of preparing for potential tax changes in the new year and considerations for estate planning.

Citywire: $27bn family office seeks ESG strategies for new platform

• ESG investing is top of mind for many clients. Reporter Nicole Piper shared our recent efforts to build out a comprehensive alternative investment platform with insight from our Chief Investment Officer Aoifinn Devitt.

Barron’s Advisor: How this advisor helps professional athletes become smart investors

• CPA, CFP®, PFS, AWMA® and Partner Diane Compardo is featured in a Q&A highlighting her current focus with clients and her perspective on portfolio management in the current environment.

Barron’s Advisor: How wealth managers are beating the hiring crunch

• Eric Kittner, CEO & Chairman of the Board, shared key strategies to hire talent in today’s competitive environment and highlighted our commitment to employee development.

Parents Magazine: Most parents say they might use retirement savings to pay for kids’ college — here’s what to do instead

• CFP®, CPA and Partner Mark Conrad shared tips to pay for higher education without dipping into retirement savings. Specifically for individuals it applies to, Mark suggests evaluating whether tapping into home equity could be an alternative.

The Wall Street Journal: Stocks decline as Nasdaq fades from record

• Our Chief Investment Officer Aoifinn Devitt spoke with reporter Hardika Singh for the outlet’s markets wrap piece. Aoifinn pointed to current global events, Hurricane Ida and a jobs report as factors impacting investor sentiment. Aoifinn’s insight also ran in Morningstar.

CNBC Grow: The ‘one-stop shop’ way for retirement savers to build wealth, according to a financial analyst

• Grant Edmunds, CFP® and Advisor, explained the nuances of investing in target-date funds, highlighting the popularity of these funds as well as the associated fees. This coverage also ran in CNBC Make It.

TD Ameritrade Network: Link unavailable

• To start off the month, our Chief Investment Officer Aoifinn Devitt joined the show to share her take on the market’s reaction to geopolitical events and where she’s seeing the best performance.

Stay up to date with Moneta news by following us on LinkedIn, Facebook and Twitter.

© 2021 Moneta Group Investment Advisors, LLC. All rights reserved. Moneta Group Investment Advisors, LLC is an SEC registered investment advisor and wholly owned subsidiary of Moneta Group, LLC.  Registration as an investment advisor does not imply a certain level of skill or training. Moneta is a service mark owned by Moneta Group, LLC. These articles do not individually or collectively constitute an offer to sell or buy securities, nor does any statement contained herein represent any specific recommendation.

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Moneta Deepens Bench with Appointment of Andrew Kelsen as Head of Alternative Investments

Seasoned financial professional will leverage 34 years of industry experience to help build Moneta’s alternative investment platform

ST. LOUIS — Oct. 13, 2021 — With evolving client needs a top priority, Moneta, a 100% partner-owned and fee-only firm offering advisory services through its registered investment advisor (RIA) Moneta Group Investment Advisors, LLC, is honored to announce the appointment of Andrew Kelsen as Head of Alternative Investments. Kelsen is the newest addition to the investment team and reports directly to CIO Aoifinn Devitt, who joined the firm in June.

With 34 years of experience in senior-level positions, Kelsen will lead Moneta’s external investment partners in building out additional private asset solutions for clients. In addition, he will work with Moneta’s internal partner teams to provide education and context around alternative investments and source ideas to fit unique client needs. He brings a large network of alternative investment relationships to leverage as he builds out Moneta’s suite of offerings. His presence at the firm deepens the bench of resources and investment opportunities for partners to offer their clients.

“Moneta has a proven track record of success and organic growth, and an expanding footprint across the nation. I’m excited to be part of a firm that continues to progress,” said Kelsen. “I have a passion for and commitment to building outstanding offerings to benefit all stakeholders. I look forward to developing an enduring platform to meet our clients’ growing demand for alternative investment products.”

Throughout his career, Kelsen has developed specialized expertise in private equity, real estate, sustainable investments and co-investments. In prior positions, he has successfully helped develop a variety of sophisticated investment platforms. In his most recent role with the Chicago Teachers’ Pension Fund, Kelsen transitioned the fund to a world-class alternative platform. His move to top 10 independent RIA Moneta is backed by years of previous experience as head of capital markets in private placements at a large independent RIA in Atlanta.

“As our client base becomes increasingly sophisticated, Moneta recognizes the need to build out more advanced portfolios with a comprehensive suite of offerings,” said Aoifinn Devitt, Chief Investment Officer at Moneta. “We’re thrilled to welcome Andrew to the team. He is a seasoned alternatives professional with a wide range of experience in the RIA and institutional sector. His extensive network of alternative relationships will help better address emerging client demands.”

Kelsen will work in Chicago where he resides.

ABOUT MONETA

Moneta Group Investment Advisors, LLC is a registered investment advisor with $27.4 billion in assets under management, headquartered in the Midwest. Barron’s ranked Moneta among the nation’s Top 10 Independent RIAs in 2017, 2018, 2019, 2020 and 2021 for its combination of quality and scale. InvestmentNews ranked Moneta among the nation’s Top 10 largest fee-only RIAs for the fourth-straight year in 2021.

The firm consistently earns praise for the way it invests in and takes care of employees. In 2021, InvestmentNews ranked Moneta among the nation’s “Best Places to Work for Financial Advisers” for the third year, the St. Louis Post-Dispatch ranked Moneta among its “Top Workplaces” for the eighth-straight year and the St. Louis Business Journal named Moneta as one of its “Best Places to Work” for a seventh-straight year.

 CONTACT

Gregory FCA for Moneta
Erin Jacob, 610-200-0566
moneta@gregoryfca.com

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