What inspires you to give? Most of us give for the same basic reasons. We want to help others, make a positive difference in the world—and giving feels good. It makes us happy and connects us to the causes we care about. Studies show that most charitable folks give according to their values or to support causes they care about. But they don’t always have a strategy around giving or a way to monitor for impact.
Over the years I have gained lots of experience in financial planning with seeing so many different scenarios-not one person’s situation is the same. Also, the CFP(R) curriculum consists of an education piece that really lays out a great framework in the Financial Planning process. When you start with a good framework that has pieces that can be replicated and add real life situations to this framework, it becomes second nature.
You may have seen headlines recently about proposals to crack down on IRA’s with large balances and alternative assets. More specifically, Paypal founder Peter Theil has really been in the spotlight with his ROTH IRA balance of $5 billion due to the appreciation of his Paypal stock and then subsequent investments.
If you are charitably inclined, what is the most tax efficient way to give to those charities?
Let us start with standard deduction versus itemized deductions. Your itemized deductions must exceed your standard deduction for any tax benefit. There is a caveat for 2021, cash donations up to $300 for single filers and $600 for Married Filing Joint are allowed as above the line deductions.
Tax planning is considering your whole situation and making any necessary changes or decisions before the tax year is complete. Think of it as forward looking. When you prepare your tax return, you are looking backwards at things that have already happened and figuring out any credits or deductions that you can take based on things you cannot change.
With interest rates so low, many people are taking advantage of this time and buying new homes so that they can lock in a low mortgage rate for 30 years. The advantage to locking in a low interest rate when purchasing (or refinancing) is that the principal and interest is fixed. You may have seen …
Following are some highlights from Biden’s Tax Plan. Some have been enacted with proposals for extension and others are still proposals. Child Tax Credit Enacted for 2021 (starts phasing out for single tax filers at $75K and married filing joint at $150K) $3600 for children under 6 $3000 for children ages 6-17 (previously children aged …