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Money Matters

Giving Back

By | 2018, Money Matters | No Comments

Finding opportunities to give back was a consistent theme among the participants at the Just for Women 2018 conference. We agree. Giving has an empowering effect on the giver, the charity that serves a need, and most importantly, on the recipients. The desire to give back is innate – not generally driven by financial benefits. Having said that, there are ways you can give that benefit both you and the charity; financially speaking. Here are two that you may want to consider.

Donation-in-kind. If you have an investment in a non-retirement account, you can donate the investment directly to a qualified charity. By doing this you completely avoid capital gains taxes. Furthermore, if you itemize your taxes, you can claim the value of the investment, on the day it was donated, as a deduction. The key benefit is that the charity receives the full value of the donation tax-free. One caveat; you must have owned the investment for at least one year and one day and it must have increased in value.

Qualified Charitable Distribution. If you have reached the wonderful age of 70½, congratulations! Uncle Sam has been waiting for this day. It is at this age that you are required to take money out of your retirement accounts; i.e. IRA, 401(k), 403(b). This is called a Required Minimum Distribution (RMD) and will occur every year going forward. If your retirement account is an IRA, you can choose to have the money you are required to take out – all or part – go directly to your favorite charity, taking advantage of the Qualified Charitable Distribution (QCD) option. The benefit to you – you do not have to claim the distribution as income or pay tax on the money that comes out. This is valuable because the distribution will not have a negative impact on your Medicare Part B premiums. The benefit to the charity – it receives the full value of your donation; tax-free.

I have the pleasure of working with the Utah Parent Center, a local charity that has served families of people with disabilities for over 35 years. I have been impressed by the positive influence they have on so many lives. While they have served more than 25,000 individuals, there are many more who could benefit from the services they provide. However, they need the support of our community to provide services to those additional people. One family’s story is below.

If you would like more information on making a donation-in-kind or qualified charitable distribution using your investments call our office at 801-355-8888. To donate directly to Utah Parent Center, use this link: https://utahparentcenter.org/donate/.

Together, we can make a difference.

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Increase the fun… not the expense!

By | 2018, Money Matters | No Comments

Did someone say “Summer”?

It’s finally here and vacation planning is in full swing. How do you enjoy your vacation without the financial worry of vacation spending? Here are 3 financial tips to get more fun and enjoyment for your time and money.

Tip 1 – Everyday doesn’t need to include costly entertainment. Do some research before you go. It’s amazing what you can find to do for free—public parks, hiking, lakes, art exhibits, museums. Check the local tourism site before you go to see what’s happening when you’re in town. They can provide information on popular, and less known, places to see and things to do.

Tip 2 – Save some extra cash for the fun stuff by renting a vacation suite or villa. It’s easy to underestimate the cost of food when eating out three meals a day. Suites and Villas have small kitchens giving you the option to eat breakfast and a few meals in. They also provide space to spread out and relax after your day of fun. Pick up some snacks to munch on while playing and avoid spending on high priced treats at tourist destinations.

Tip 3 – Yes, impulse buying happens, even while on vacation. To avoid this, give yourself, and your fellow travelers a souvenir budget – in cash. When the money is gone, the spending ends. T-shirts, hats, and other theme-related souvenirs are generally available online at a better price. Purchase them before you go and wear them to the theme park. If you see something you like at the local boutique or gift shop, ask if there is a company website. If you’re still thinking about the item when you get home, buy it online. This will cut down on impulse spending and you’ll avoid the peril of packing your souvenirs for the journey home.

Wishing you a summer packed with fun!

Sharla J. Jessop, CFP®
President

Bonus Tip – Leaving town? Before you go, let your credit card company know you will be traveling. Your credit card provider may view a charge as suspect if made from another state. It can be extremely frustrating if your credit card is rejected when you’re trying to make a purchase. I’m speaking from experience!

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