Retirement Answer Man

Year-End Planning: Charitable and Family Giving

Nov 27, 2024

Get ready to enhance your retirement plans with smart year-end giving strategies! Learn how charitable contributions can be optimized for tax benefits, and discover ways to make impactful family gifts. Curious about tax implications? Find out how batching donations can maximize your advantages. Plus, stay updated on HSA limits and catch insights from upcoming guests. Dive into effective financial planning and get inspired to make meaningful contributions that elevate your retirement experience!

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Quick takeaways

Charitable giving strategies, such as batching donations and utilizing appreciated stocks, can maximize tax benefits and financial impact.

Family giving, with annual exclusions of $18,000, enables support for loved ones while minimizing tax implications on gifts.

Deep dives

Charitable Giving Opportunities

Charitable giving offers individuals the chance to fulfill their altruistic intentions while also navigating potential tax benefits, particularly when itemized deductions come into play. For tax year 2024, those who typically do not itemize their taxes might miss out on the financial advantages of charitable contributions, making it worthwhile to consider grouping donations in a single year to surpass the standard deduction threshold. The podcast highlights practical strategies, such as donating appreciated stocks instead of cash to avoid capital gains tax, thereby maximizing the financial impact on both the donor and the receiving charity. Additionally, individuals over 70 and a half can utilize qualified charitable distributions from their IRAs to satisfy required minimum distributions while supporting charitable organizations, providing a strategic tax-advantaged method of giving.

Strategic Year-End Giving for Charitable and Family Purposes

29min

Navigating Financial Strategy and Charitable Giving

11min

Welcome to another episode dedicated to enhancing your retirement journey! Today, we wrap up our series on year-end action items with a focus on charitable and family giving. Discover how strategic charitable contributions can optimize your tax plan and learn about family giving opportunities that can make a difference. We also address your questions and share essential updates, including a correction on HSA contribution limits and an exciting upcoming live case study. Plus, get ready for a December packed with insightful guests like Christine Benz and Michael Easter. Dive in and explore ways to rock your retirement with confidence!

PRACTICAL PLANNING SEGMENT

(00:30) Today we are going to talk about charitable and family giving.

(00:53) I misquoted the HSA contribution limits in episode 565

(02:40) In January we are doing another Retirement Plan Live series.

03:50 In December we will have several great guests on the podcast including Christine Benz, Daniel Crosby, Michael Easter, and Tanya Nichols.

(04:21) Today we're going to talk about charitable and family giving

(05:30) There's no real impact from a tax perspective on charitable giving unless you itemize your tax return.

(07:41)What are ways of giving to a charitable organization?

(12:00) You can batch your charitable contributions into one year in order to have a significant impact on the tax you pay in reduction.

(14:42) Let’s talk about family giving. You can give up to $18,000 a year in family giving.

(16:44) You can pay family educational expenses and medical expenses without limit as long as you are paying directly to the institution.

LISTENER QUESTIONS

(18:00) I had a discussion with a member of the Rock Retirement Club yesterday about moving to a warmer state in retirement and helped analyze the feasibility of their plan in the different states.

(25:14) One question related to the upside portfolio, do I have to build a whole asset allocation?

(28:45) Our next question is an audio question related to rebalancing. “Hi, Roger. I have a question about the process of rebalancing your pie cake… what process should I use to refill layer two of my pie cake to continually fund the next five years of my life?”

SMART SPRINT

(37:55) In the next seven days review your charitable and family giving.

BONUS

(38:15) Roger shares another excerpt from his grandfather's WWII journal.

REFERENCES

Simon Sinek- Originator of Humble Pie Quote
https://simonsinek.com/

Red Cross
https://www.redcross.org/

Schwab Donor-Advised Fund
https://www.schwabcharitable.org/

Fidelity Donor-Advised Fund
https://www.fidelitycharitable.org/

Upcoming Podcast Guests:

Christine Benz
https://www.morningstar.com/people/christine-benz

Michael Easter
https://eastermichael.com/