Tax Efficient Strategies for Charitable Giving

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As the seasons start to change and the holidays approach, we are reminded of how fortunate we are and how much we have to be grateful for. We are also reminded that the season of giving is upon us. But, if you’re retired, you may be worried about where extra income will come from and how you can continue to support the charities that are important to you. For retirees, there are some strategies that you can use for giving to charity that may make charitable giving to your schools, religious organizations, cultural causes and neighborhood charities more tax efficient.

Just like with most things, before you begin you should have a plan. Knowing how much you want to give and the charities you wish to give to, can give you a better idea of how much you will be spending overall. Next, you should review your selection and follow the tax rules closely so that you are sure you’re getting full credit for your gift.

One of the tax-efficient strategies you could start with is using qualified charitable distribution or QCDs. These reduce your taxable income without itemizing and can satisfy and required minimum distribution. You may even be able to write a check straight from your IRA in order to satisfy your QCD. But, before you make any IRA moves, you may want to first check with your IRA custodian to make sure that you don’t miss any necessary steps. It’s also important to note some guidelines for QCDs, if you take out your required minimum distribution and then decide to do the QCD, it won’t count towards your RMD. You also have to correctly report your qualified charitable distribution on your tax return and know that there is a limit of $100,000 per individual.

Another option is looking into a donor-advised fund. This fund groups your deductions so you can itemize more easily. The money also grows tax free, and you have the option of donating anonymously. However, even though they are set up in your name, these funds are controlled by a large nonprofit organization. You can donate different things such as real estate, cash or assets just to name a few. But, although you may suggest grants to charities, you won’t have full control, and these accounts might come with additional fees.

Lastly, you should consider donating your appreciated assets in order to avoid long-term capital-gains of up to 20%. Before doing this though, you should consider your heirs who are looking their chance for a step-up basis by inheriting appreciated assets.

The world of charity and taxes can be overwhelming, which is why it’s important to talk over all your options with your financial planner before making any decisions. We want to make sure you’re making smart tax moves to protect your portfolio. Click here to schedule your no cost, no obligation financial review and make sure you have a tax efficient strategy for charitable giving

Staying Calm in Unpredictable Markets

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There’s no doubt that the markets are unpredictable. Just over 2 months ago officially marked the current period of growth as the longest-lasting bull market in history. A bull market is generally noted as any period of rising stock prices and can be measured as a time in which market values rise at least 20 percent after a decline of 20 percent. However, as the saying goes, what comes up, must come down and in the past few weeks, the market has people concerned. With large daily drops and sharp jolts, it can be nerve-wracking. But, if you’re in retirement or approaching retirement, it’s important to stay calm and not let your emotions affect your financial decisions.

First things first, have a plan that prepares for down markets and stick to it. You can also create an investment strategy that looks at your risk tolerance and sell thresholds so that you are prepared beforehand.  Follow these tips to control your emotions when the market changes.

Stay focused and avoid panic by turning off the news. The TV stations don’t always help you make sense of the world, they tend to use alarming terms to focus on the declines. Instead, you should focus on what you know for sure. This is hard for most people, because we tend to dwell on what we don’t know and the questions that we have. However, you should remain at ease knowing that you need to be invested in order to achieve your goals and stocks are a great way to grow your portfolio over time.

Now that you’ve realized that stocks are important to your financial portfolio, try to avoid extreme changes to that portfolio. Doing something extreme can have long lasting repercussions. If you decide you need to do something, aim to make a smaller change that won’t fully disrupt your plan. Some people also consider rebalancing. Rebalancing your allocation to stock and bond funds for most means selling bonds and buying stocks. This isn’t easy to do when stock markets are in turmoil but can pay off in the long run.

Working with a financial advisor can also help give you peace of mind with your decisions. An experienced advisor can put things in perspective and talk you through any concerns you may have. A professional can also help you stick to your plan and stay focused on your goals because in retirement, emotional decisions can be costly.

You can’t outguess the market, but you can create an adaptable plan to accomplish your retirement goals. We can look at your whole portfolio and help you decide what moves are best for you so that you can achieve these goals. Click here to schedule your comprehensive financial review. There will undoubtedly be more ups and downs, but one thing that holds true is the need for a plan regardless of what happens in the market.

 

Are You Nurturing Your Relationships?

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Social networks have been on everyone’s mind lately, from Facebook’s falling stock price to debates about whether the internet is too isolating. If you’ve been thinking about your own social networks, you’re probably asking yourself a few common questions. Who do I really connect with? How do I stay part of other people’s lives, and have them stay in mine? What’s the difference between a casual friendship, and a really meaningful one?

In retirement, social networks are more important than ever. After all, this is when you’re going to have more time to invest in friendships both old and new. We all need networks of family, friends, and community. Whether that’s a band, a religious group, or some old golf buddies, retirement should let you make time for the people who really matter and the things that really make you happy.

But that isn’t easy. It can be hard to really set yourself up for a retirement full of friends, connections, and fun. Why? Because leading up to retirement, many of us are so focused on work that we don’t leave enough space to nurture those relationships. We tend to isolate ourselves even further by throwing ourselves deeper into work over concerns about not having enough money to last for retirement. And unfortunately, all of that extra work – and the stress that comes with it – can take a toll on your social relationships. You might find yourself saying “no” to those get-togethers with your pals just to finish up that one big project. At some point when you keep saying “no” too many times, people stop asking, and that’s something you don’t want to happen right when you need them the most.

So, what can you do to strike a healthier work-life balance? One thing you can do to alleviate some pressure is make sure you have a solid retirement plan in place, and it starts by clicking here to set up your complimentary, no obligation financial review. During our meeting we’ll assess your current financial situation and discuss how we can create a strategy to help you reach your financial and lifestyle goals. Simply understanding if you’re on track for retirement may give you the confidence you need to feel free to accept those invitations for those get-togethers.

Our goal is to help bring organization and clarity to the complexities of retirement planning, so you can start enjoying time nurturing your relationships instead of spending all night puzzling over finances. Getting prepared for retirement is serious business, but it shouldn’t come at the expense of your social network. We’re here to help so you can get back to what really matters: friends, family, community, and fun.

 

Finance Your Retirement Goals

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Finance Your Retirement Goals

As we get older, we start to think (and potentially worry) more and more about where our retirement income will come from. After you leave your job and begin on the journey of retirement, you will rely heavily on guaranteed sources of income. For most people, they assume this will be mainly collecting Social Security. However, there are many other sources that could be the key to living a comfortable retirement lifestyle and finding what works best for you, so that you can help finance your retirement goals. But, also remember that financing them is only one part to the equation, as you have to make certain that you stay focused on your retirement goals.

If you started planning early, you may be able to use your 401(k)s and IRAs to help create a sustainable and dependable source of retirement income. Unfortunately, most Americans have not put enough of their savings into these accounts to rely on them, but there are plenty of other ways to make up the difference and make sure that your bills are paid for with money to spare. One of these ways is with taxable investments. The most important step with investments such as stocks, bonds and mutual funds, is making sure that you diversify your portfolio. How are you dealing with market risk? The benefits of basic diversification can help you to have all of your assets accounted for, while making sure that they all aren’t moving in the same direction all the time.

If you are fortunate to live a long retirement, you also should make sure that your money will last as long as you do. One way to make money in retirement is by selling things you no longer need or renting unused rooms in your home. Renting gives you a steady income each month while selling goods that you no longer need can help clear out clutter and give you some extra cash. You can even expand to online selling platforms such as eBay or Craigslist or sell handmade crafts on a website like Etsy. Lastly, some retirees decide to pick up a part time job. This helps with retirement income, but also can be a great way to spend some time doing what you love. When retirees go back to work part-time, it can be much more relaxing than their full-time positions, thus giving them an opportunity to work in a low stress environment and meet new people.

At Peak Financial Freedom Group, we believe that a successful retirement first starts off with a solid, customized retirement plan. We’ll work together to go over your financial plan to help discover how to best finance your retirement goals for the long road ahead.

Peak Financial Freedom Group
2520 Douglas Boulevard, Suite 110
Roseville, CA 95661
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2019(1), 2020(2), 2021(3), 2022(4), 2023 (5) and 2024 (6) Five Star Professional Wealth Manager Award - Dan Ahmad and Jim Files have been nominated for and have won the 2019, 2020, 2021, 2022, 2023 and 2024 Five Star Wealth Manager Awards. Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. Once awarded, wealth managers may purchase additional profile ad space or promotional products. Award does not evaluate quality of services provided to clients. The Five Star award is not indicative of the wealth manager’s future performance. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by Five Star Professional or this publication. Working with a Five Star Wealth Manager or any wealth manager is no guarantee as to future investment success, nor is there any guarantee that the selected wealth managers will be awarded this accomplishment by Five Star Professional in the future. Award winners represent an exclusive group of wealth managers who have demonstrated excellence in their field by satisfying 10 objective selection criteria. For additional information on the Five Star award, including a complete list of the 10 objective selection criteria and their research/selection methodology, go to https://fivestarprofessional.com.

Investment advisory services are offered through Fiduciary Solutions, LLC, a California Registered Investment Advisor. Insurance products and services are offered through PFFG Insurance Agency LLC, a licensed insurance agency (CA Insurance License #0N14013). Peak Financial Freedom Group LLC is a financial planning and umbrella marketing organization, which enables the provision of multiple financial services under one brand. Peak Financial Freedom Group LLC, PFFG Insurance Agency LLC, and Fiduciary Solutions LLC are affiliated entities with common ownership and control. Jim Files is licensed as an investment adviser representative with Fiduciary Solutions LLC (CRD # 1620449) and is a licensed insurance producer with PFFG Insurance Agency LLC (CA Insurance License #0F06511). Dan Ahmad is licensed as an investment adviser representative with Fiduciary Solutions LLC (CRD # 1491561) and is a licensed insurance producer with PFFG Insurance Agency LLC (CA Insurance License #0732913).

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