ODCM - March Newsletter

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Teammate Spotlight

Happy Birthday to our very own Judd McCoy who celebrated a birthday in February.

 
 

Michael celebrates 15 years at ODCM this month. A huge congratulations and thank you to him for the great work he does for our clients!

 
 

Shout out to Breanna, who has been making sure we stay in compliance and protect our clients and their security for 5 years in February.

 
 

Dawn joined the Board of Directors of The Women’s Initiative, a Charlottesville non-profit which provides women with effective counseling, social support and education so they can transform life challenges into positive change and growth. She also spent a week in the Caribbean with her family, enjoying some warmer weather!

 
 

ODCM Update

Last week we shared an update on how the markets are being affected by the events taking place in Ukraine and, while it is essential that we prepare for what may happen from an economic standpoint, it is also important that we acknowledge any of our clients who are experiencing stress and hardship because of this crisis. Many of you likely have friends or family in Ukraine, Russia, or neighboring countries and some of you may have loved ones in the U.S. military already in, or who are being sent to the region. Please know that our hearts go out to each and every one of you and that we are here to support you.

From an investment perspective, we would simply remind investors that in times of uncertainty, it’s best to stay focused on the long-term. Since 1900, there have been world wars and regional conflicts, deep recessions and market setbacks, pandemics, periods of both rapid inflation and deflation, a nuclear arms race and a cold war, and many other periods of uncertainty. And yet, the economy has continued to grow over time with the market marching on to reflect that growth. So we encourage clients to maintain adequate reserves for short-term needs and to stay focused on their long-term goals with an appropriate asset allocation for their risk profile.

Believe it or not, it’s that time again - time to get to work (if you haven’t already done so) on your 2021 income taxes! Here are a few steps you can take to help lower your taxes, save money and avoid tax penalties:

1. Contribute to retirement accounts. If you haven’t already funded your retirement account for 2021, you have until the tax return filing due date to do so. That’s the deadline for contributions to a traditional IRA, deductible or not, and to a Roth IRA. Making a deductible contribution will help you lower your tax bill this year. Plus, your contributions will compound tax-deferred. It’s hard to find a better deal.

2. Make a last-minute estimated tax payment. If you didn’t pay enough to the IRS during the year, you may have a big tax bill staring you in the face. Plus, you might owe significant interest and penalties.

3. Organize your records for tax time. Good organization may not cut your taxes, but there are other rewards. For many, the biggest hassle at tax time is getting all of the documentation together. This includes last year’s tax return, this year’s W-2s and 1099s, receipts and so on.

4. Itemize your tax deductions. It’s easier to take the standard deduction, but you may save a bundle if you itemize, especially if you are self-employed, own a home or live in a high-tax area.

5. Provide dependent taxpayer IDs on your tax return. Be sure to plug in Taxpayer Identification Numbers (usually Social Security Numbers) for your children and other dependents on your return. Otherwise, the IRS will deny any dependent credits that you might be due, such as the Child Tax Credit.

6. File and pay on time. Or at least file for an extension by April 18, 2022.

7. Let us know if you need help with any of the above!

 
 

Client Spotlight

Susan and Rob Moore

Married with children

Age: 40 and 42

Education: College and Technical School

Profession: Engineer and Director of Advancement for a non-profit

Family: Son and daughter together; another son from a previous marriage

CHALLENGE:

Managing a Career While Planning for Retirement

When life got busy with children and careers, finances took a backseat but the Moore’s realized that it was time to take control. With the kids excelling in high school, Susan's non-profit career taking off and Rob getting promoted to his dream job, a lot was going right. Still, Susan and Rob had nagging doubts about their financial life. They wanted to know more about:

• saving and paying for college

• managing their stock options

• how much, if any, life insurance they needed

• whether they needed to establish a trust

• should they buy rental property for passive income

• what mutual funds should be in their retirement accounts

• whether to contribute to a Traditional or Roth 401(k) (or both)

• were there blind spots in their financial lives that they simply weren't aware of

SOLUTION:

After gathering some data and discussing long-term goals, we were able to show them the best ways to set aside money for their children's future while saving for their own retirement. We were also able to give them a clear picture of the potential opportunities and pitfalls of real estate investing, as well as how that would fit into their overall financial picture. They learned which investments and insurance coverages made the most sense for their family. And, we were able to work with them and their estate planning attorney to come up with a plan that works for their blended family.

Now Susan and Rob have a clear picture of their finances and a path to achieving their goals. And since they are still incredibly busy with their lives, they are relieved to have us to turn to for investment management and ongoing financial guidance.

 
 

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Best of C-Ville 2021 awards determined by C-Ville Weekly during the voting period of June 16, 2021 through July 12, 2021. No fee was paid in exchange for this award and it is not indicative of future performance, is not an endorsement, and may not be representative of individual client’s experience.

 
 
 

RISKS AND OTHER IMPORTANT CONSIDERATIONS

Old Dominion Capital Management, Inc. (“ODCM”) is an SEC-registered investment adviser. This document does not constitute an offer to sell or the solicitation of an offer to purchase any security or investment product or service nor shall it be construed or relied upon as providing any type of investment, legal, tax or other advice. Past performance is no guarantee of future results.

The views and opinions expressed here are for informational and educational purposes only as of the date of writing and may change at any time based on market or other conditions and may not come to pass. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The information provided does not consider the specific objectives, financial situation, or needs of any specific person. All investments carry a certain degree of risk and there is no assurance that an investment will provide positive performance over any period. Equity investments are subject to market risk or the risk that stocks will decline in response to such factors as adverse company news or industry developments or a general economic decline. Debt or fixed income securities are subject to market risk, credit risk, interest rate risk, call risk, tax risk, political and economic risk, and income risk. As interest rates rise, bond prices fall. Noninvestment-grade bonds involve heightened credit risk, liquidity risk, and potential for default. Foreign investing involves additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets.

INDEX PERFORMANCE DISCLOSURES

No investor can invest directly into a passive index. Investors should be aware that you cannot achieve the returns shown because an actual account will incur operating and management expenses from its investment and possibly advisory, custodial and/or recordkeeping expenses. The performance returns sampled here do not represent the impact that material economic and market factors might have on an investor’s decision making process if the investor were invested in the market. The calculation of performance differs from actual account performance because the investment strategy may be adjusted by a client at any time for any reasons. The performance returns sampled here reflect the reinvestment of dividends and other distributions. Third party sources collect the data from financial institutions and related types of entities that created the indices and publish the indices values periodically. The third-party sources then calculate performance used in this document. All data is believed to be reliable but is not independently verified by ODCM.