Listen to hear Jonny break down the tips, tricks, and strategies he uses to help clients retire early. This is the "easy button" when it comes to early retirement because everything you want and need to know is right here. Jonny will lay it all out in plain English so you can get the details on the actions you can do to put yourself on the best path to early retirement. He'll also interview top real estate, tax, and estate planning and other professionals to provide a comprehensive approach to your retirement planning. Nobody builds wealth by accident. Listen to find out how you can do it on purpose.
https://one-for-the-money.captivate.fm
episode 51: How to Give Better
Giving to others can be an incredibly rewarding experience. Have you ever wondered how you can give better? In this One for the Money podcast episode, I discuss ways to improve our giving and make it more impactful for both others and ourselves.
In this episode...- The season of charitable donations [01:12]
- Donor-advised funds [03:39]
- Donating appreciated assets [05:26]
- Giving retirement money [06:33]
- Planning charitable giving [09:32]
The month of giving
For many people, December is the season of giving. While many may think of presents around a Christmas tree, December is also when the most money is given to charitable organizations. According to the Blackbaud Institute, in 2021, over 20% of all donations for the year were received in December.
Americans gave an astounding $471 billion to charity in 2020, nearly 70% of that coming from individuals. What’s fascinating is that philanthropic giving is highly correlated to the stock market’s strength. The better the stock market performs, the more charitable contributions are made.
Investing to giveA donor-advised fund is an investment account you set up to hold your donations, allowing you to receive a tax deduction. The great thing is that you don’t have to decide where to donate these funds until later. The money can grow until you find the charity best aligned with your values. Donor-advised funds can accept non-cash assets, as well as stock, mutual funds, bonds, and even S and C corp stock.
While a donor-advised fund can be a potent vehicle for charitable contributions, the fact that they can receive stock provides an introduction to another powerful way to give to either a donor-advised fund directly or to a charity itself. Some may think it’s best to sell appreciated assets and give the money to charity. A better way is not to sell the asset at all and give it directly to the charity. Donating appreciated stock to a charity can be more beneficial than selling it. The charity can receive more without paying taxes, and you can qualify for a larger tax deduction.
Qualified charitable distributionsWhat if you want to give some of your retirement money to charity? A qualified charitable distribution(QCD) is a tax-free donation from an IRA to a qualified charity. While a QCD can’t be deducted from your taxes, the savings on your income may make this type of donation beneficial to your taxes. A QCD counts toward satisfying the required minimum distributions.
QCDs must go directly from the IRA to the charity. Clients can be provided with a checkbook just for their QCDs so they can make direct contributions. While there isn’t a deduction for these contributions, they’re a great way to give unwanted retirement funds to charity.
Securities and Advisory services offered through LPL Financial. A registered investment advisor. Member FINRA & SIPC.
Resources & People Mentioned- Overall Giving Trends - Blackbaud Institute
- Trends that Will Shape Philanthropy in 2022 | Giving USA
- 2021 Donor-Advised Fund Report | National Philanthropic Trust
- Who Itemizes Deductions?