Modernist's 2019 Year-End Updates & Deadlines

linkedin HERO rvh ver3-01.jpg

Modernist is busily preparing for year-end tax and financial planning deadlines.

To make sure we’re all prepared before 12/31 arrives, we’ve gathered some updates to review before year-end that can support your long-term financial health.

Below you’ll find an overview of important IRS and other deadlines, as well as an update regarding the potential mergers of our strategic partners: Loring Ward & BAM Advisor Services, as well as Schwab & TD Ameritrade.

You may also enjoy reading part 1 of our white paper It’s Not About What You Make; It’s What You Keep.  Part 1: Tax Planning if you want a refresher on tax planning.

Happy early new year!

1.jpg

IMPORTANT 2019 12/31 DEADLINES

  • If you have any Flexible Spending Account (FSA) dollars left, make sure to spend them before the deadline.

  • If you or your family want to make tax-exempt gifts, the annual gift tax exclusion is $15,000 per person.

  • If you want to complete charitable giving before the end of the year, be mindful of the fact that the 12/31 deadline applies to cash, whereas gifting stocks or other assets probably have an earlier deadline.

  • If you’re already supporting Oregon arts non-profits, consider making a matching gift to the Oregon Cultural Trust; you could receive a 100% matching tax credit (detail in link.)

  • During Benefits Renewal, Let us know if you would like help reviewing your insurance renewal options.

  • If you need to sell any assets to realize capital gains/losses for the year, do so by 12/31. For Modernist clients, please reach out to us before 12/20.

 

10.jpg

UPDATES ON MODERNIST INVESTMENT VENDORs

We pride ourselves on continually iterating on a business model that is structured around our clients’ best interests, including how we maintain and care for investment accounts as a key element of their larger financial life. We carefully vet all of our vendors as part of our regular business maintenance, especially whenever changes occur within the industry.

As you may know, Modernist Financial has two investment vendors who are currently involved in mergers: Loring Ward & Buckingham Advisor Services, as well as Charles Schwab & TD Ameritrade.

 

Loring Ward Merges with BAM Advisor Services

Our investment partner, Loring Ward has nearly completed its merger with BAM Advisor Services. This new firm will be known as Buckingham Strategic Partners.

The reason we chose Loring Ward as a strategic partner in the first place was based on our shared investment philosophy, commitment to financial planning-driven investment management, and dedicated resources. All these reasons still very much apply moving forward.

The merged company now has additional tools to help us do what we’ve always done: applying the insights of leading academics & Nobel Laureates through Buckingham’s Investment Committee, alongside our clients’ CPAs, business lawyers, and other professionals, to help our clients structure their financial lives around their values.

 

Charles Schwab Purchasing TD Ameritrade

Last week it was announced that in 2020 Charles Schwab Corp. aims to buy our current investment custodian, TD Ameritrade.

When we analyzed our custodian options in 2015, we chose TD Ameritrade in part because they were the most tech-positive major custodian, while also being more balanced in their political donations.

There is still a long road ahead, as reporting points to the merger taking 18 to 36 months to complete, with potential anti-trust hurdles along the way.

To read some updates on the merger, checkout Schwab’s merger FAQ and the recent New York Times article covering the merger.

We are proactively collaborating with Buckingham to stay apprised of progress on the Schwab & TD Ameritrade merger, while exploring potential opportunities in how Modernist partners moving forward.

We will keep you updated as further changes come to light.

We hope you have a restful New Year ahead,

Georgia & Team Modernist

INVESTMENT INSIGHTSGeorgia Hussey