4 Valuable Tips to Help You Navigate Tax Season

It’s that time of year again. Tax season is upon us and we want to make sure you have the resources you need to successfully file your taxes.*

1. Important tax dates that you should take note of

   1. February 12th marks the beginning of tax season

   2. The first business day in March usually marks the beginning of refund issuance

   3. April 15th is the deadline

   4. You can request an extension to October 15th

2. Tax tips for IRA holders

   1. You can make contributions that count toward the 2020 calendar year up until April 15th. For example, if you received your second stimulus check last month, you may want to consider putting that money into your IRA and counting it toward 2020 contributions.

   2. We recommend that you look at your account statement to confirm your prior and current year IRA contributions. In May, financial institutions will begin sending out Form-5498 which can be used as the official confirmation of your prior year IRA contributions.

3. Tax tips for pastors

   1. If you receive a housing allowance, do not claim that on your taxes! This is tax-exempt and is a great way for your church to bless you. 

   2. Additionally, if you have a 403(b)9 through your church, you can specify a certain amount equal to your housing allowance to contribute tax-deferred. Then, in retirement, if your church issues an official letter that you may withdraw a housing allowance from your retirement fund, you can do so, untaxed. This strategy can save you thousands in tax payments over the decades.

4. Tax tips for retirees

   1. 1099R forms must be filed for each fund or organization from which you have taken a distribution. This includes:

      1. Profit-sharing or retirement plans

      2. Any individual retirement arrangements (IRAs)

      3. Annuities, pensions, insurance contracts, survivor income benefit plans

      4. Permanent and total disability payments under life insurance contracts

      5. Charitable gift annuities, etc

   2. For more information on 1099Rs, click HERE.

As always, we recommend speaking with a Certified Professional Accountant for details, instructions, or additional help while filing your taxes. If you have questions about your investments or need a form that you cannot find, reach out to our Client Services Team by email or phone (during normal business hours) at (888) 879-1376.

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* Envoy does not offer legal or tax advice and encourages that you consult with a lawyer and/or professional tax advisor for personalized tax advice.

Biblically Responsible Investing: Why Christians Should Understand This Investment Strategy

What is Biblically Responsible Investing?

Like most people, you’re probably an “average” investor. You know you’re supposed to save for retirement—and you are! You have your retirement savings account lined up and you’re putting a percentage of your paycheck towards that account. But honestly…you’re not interested in knowing all the financial jargon or watching how the market performs.

We understand the feeling. Investing can be complicated, especially for those of us who don’t want to know the nitty gritty. We just want to make sure we have enough money put away so that we can retire when it’s time.

But what if we told you that there’s more to investing than simply putting away money? What if we told you that your money could be supporting practices that you’re morally opposed to?

As Christians, understanding how your money is invested is important…and yes, you’re right—this is where Biblically Responsible Investing (BRI) comes in. So what is Biblically Responsible Investing?

Here’s Biblically Responsible Investing in its simplest form.

Let’s start with the basics.

What does it mean to invest?

When you invest, you are simply owning a small portion of a company, which allows the company to create sustainable revenue in the long run. Remember learning about the word “capital” in your beginning Economics class? That’s basically what it is. As an investor in the company, you receive any profits and growth the company generates.

What companies should you invest in?

But, did you know that millions of dollars from Christians are unknowingly invested in companies that fund non-biblical practices? It can be shocking to discover that your investments have been supporting causes that you oppose, such as abortion or pornography.

As an owner in the company (investor), it’s important to understand what the company supports. What are the values, ethics, and morals of this company? Who is this company financially supporting? Is this company operating with integrity?

Investing from a biblical perspective

Biblically Responsible Investing is the practice of investing in companies that embrace biblical beliefs and practices. Investments are actively filtered to find companies that make ethical, responsible, and impactful decisions and to avoid companies that are opposed to your Christian values. Biblically Responsible Investing is a way for Christians to:

• take stewardship of the money God has given us.

• worship God through our investing.

• invest with limited exposure to biblical conflicts.

Make sure you have the option to choose BRI funds

As a Faith Driven retirement plan provider, one of Envoy Financial’s goals is to provide you with investment options that align with your biblical values. Envoy objectively screens your investments to ensure you are not supporting something that contradicts your Christian values.

This commitment is gaining momentum as more BRI options become available in retirement plans.

Will BRI get you the investment results that you need?

A common concern around BRI is that the investment results could be underperforming. Thankfully, you can align your investments with your biblical beliefs and still get great results!

Recent studies show that actively managed screened investments, on average and over a long period of time, tend to perform similarly, and in some cases better than unscreened investments.

The BRI options Envoy recommends are competitive in both performance and cost compared to their non-BRI peers.

Questions about Biblically Responsible Investing?

Schedule an online/phone meeting with a licensed Envoy advisor today. We’re here to help!

>> SCHEDULE ADVISOR MEETING <<

To learn more about BRI, click HERE.