Author: Beau Bryant, CFP®

Turning 50 is a pivotal milestone, not just in life but in your financial planning journey. For many, this is a time to take a closer look at your retirement plans and ensure that you’re on track to meet your goals. The 401(k) plan, often a cornerstone of retirement savings, becomes even more critical at this stage. Let’s explore why your 401(k) matters more after 50 and the steps you can take to maximize its potential.

Retirement Readiness: The Facts

Retirement readiness remains a challenge for many Americans:

• Statistics on Readiness: According to the Federal Reserve’s 2023 Economic Well-Being report, only 38% of individuals aged 45 to 59 feel their retirement savings are on track[1].
• Savings Gaps: Additionally, the Employee Benefit Research Institute’s 2023 report shows that 57% of individuals aged 50 and older have less than $100,000 saved for retirement[2].

Today, those who are within 10-15 years of retirement can be in various stages on their path to retirement.  Some may have started saving early and diligently, while others may have had to reduce their annual savings goals, or eliminate them entirely, based on unexpected challenges in their younger years.

Why Your 401(k) Matters More After 50

Your 401(k) is likely to be one of your largest retirement assets, and with the right strategies, it can help secure your financial future. After age 50, you gain access to unique advantages:

• Catch-Up Contributions: In 2025, individuals aged 50 and older can contribute an additional $7,500 on top of the standard $23,500 annual limit. This allows you to save $31,000 annually, significantly boosting your retirement nest egg.
• New in 2025 – “Super Catch-Ups”: Also in 2025, those who are between the ages of 60 and 63 can contribute an additional $3,750 on top of this year’s catch-up contribution amount.  This means that these individuals can contribute a total of $34,750 in 2025.
• Begin Planning for Tax-Efficient Distributions: As you approach retirement, you can start developing strategies for tax-efficient withdrawals to minimize the tax impact and maximize the longevity of your savings.
• Revisit Portfolio Allocation and Risk: This is a critical time to adjust your portfolio to balance growth with preservation, ensuring your investments align with your evolving risk tolerance and retirement timeline.
• Integrate into a Comprehensive Financial Plan: Use your 401(k) as part of a broader strategy that incorporates other assets, income streams, and both short- and long-term retirement goals. This ensures alignment and maximizes efficiency in reaching your desired outcomes.

Steps to Optimize Your 401(k) After 50

Maximizing your 401(k) requires proactive steps. Here are four key actions to consider:

1. Identify Your Retirement Goals Define your vision for retirement. Do you plan to travel, downsize, or support family members? Clear goals help guide your contribution levels and investment choices.
2. Review and Increase Contributions Take full advantage of the higher contribution limits available after age 50. Even small increases in contributions can lead to significant growth over time.
3. Optimize Asset Allocation Ensure your portfolio aligns with your time horizon and risk tolerance. A balanced approach combining growth and income-focused investments can help preserve wealth while generating returns.
4. Plan for Distributions Develop a tax-efficient withdrawal strategy, particularly as you approach the age for Required Minimum Distributions (RMDs). Proper planning can help minimize taxes and extend the life of your savings.

The Power of Compounded Growth

One of the most compelling benefits of your 401(k) is the exponential growth it can achieve through compounding. When you make regular contributions and allow market performance to work over time, the results can be transformative:

• Contributions Grow on Themselves: Each year’s contributions build upon the last, and the earnings generated also begin to compound, creating a snowball effect.
• Exponential Returns Over Time: For someone starting at age 50 and contributing $31,000 annually, assuming a 7% annual return, the account can grow to approximately $883,530 by age 65[3]. This illustrates how even late-stage contributions can lead to significant growth.
• Market Performance Adds Momentum: With a well-allocated portfolio, market gains compound year after year, potentially accelerating growth as your balance increases.
  By focusing on consistent contributions and allowing time to work in your favor, your 401(k) can become a powerful tool for achieving a secure and fulfilling retirement.

Avoid Common Pitfalls

While focusing on growth, be mindful of these common mistakes:

• Delaying Contributions: Every year counts. Start maximizing your savings today.
• Ignoring Roth 401(k) Options: Roth accounts offer tax-free growth and withdrawals, which can complement your overall strategy.
• Failing to Review Your Plan: Regular check-ins ensure your investment strategy evolves with your goals and market conditions.
• Neglecting to Stress Test Your Financial Plan: Failing to account for factors like inflation, market volatility, early death, or longer-than-expected lifespans can jeopardize the success of your plan. Regular stress testing ensures high probabilities of success even under adverse conditions.

Take Control of Your Financial Future

Turning 50 is an excellent time to reassess and refocus your retirement strategy. By optimizing your 401(k) contributions, adjusting your portfolio, and planning ahead for distributions, you can set yourself up for a secure and fulfilling retirement.

If you’re ready to take the next step, our team at Resolute Wealth Advisor is here to help. Contact us today to schedule a consultation and ensure you’re on the right track to meet your retirement goals.

[1] FEDERAL RESERVE BOARD. (2023). ECONOMIC WELL-BEING OF U.S. HOUSEHOLDS IN 2023. RETRIEVED FROM HTTPS://WWW.FEDERALRESERVE.GOV/PUBLICATIONS/2024-ECONOMIC-WELL-BEING-OF-US-HOUSEHOLDS-IN-2023.HTML

[2] USAFACTS. (2022). RETIREMENT SAVINGS DATA. RETRIEVED FROM HTTPS://USAFACTS.ORG/DATA-PROJECTS/RETIREMENT-SAVINGS

[3] SOURCE: HYPOTHETICAL CALCULATION BASED ON A $31,000 ANNUAL CONTRIBUTION AND A 7% ANNUAL GROWTH RATE OVER 15 YEARS FOR A CLIENT BEGINNING AT AGE 50. ASSUMPTIONS ALIGN WITH STANDARD COMPOUNDING INTEREST MODELS USED IN RETIREMENT PLANNING SCENARIOS.

As the New Year approaches and the busy holiday season is upon us, your year-end tax planning may not be top of mind. You may well want to put off this work until January 1^st or even April 15^th, but doing this could lead you to overpaying – or facing anxiety about getting everything completed in time. We’ve put together this practical checklist of actions that you can take before the end of the year to minimize your tax liability. Consider these actions for a strong financial start to 2024.

Year-End Tax Planning Step #1: Income and Deductions

You may have received income from more than one source in 2023. It’s important to understand the potential deductions that each type may offer. Most year-end income and deduction forms are made available no later than January 31^st.

• Form W-2: This document outlines income earned from wages, salaries, bonuses, and tips.
• Form 1099-DIV: This form reports dividends and investment distributions.
• Form 1099-R: This form reports any distributions taken from various retirement accounts including annuities, profit-sharing plans, IRAs, insurance contracts, and pensions.
• Form 1099-INT: This document is used by financial institutions and other entities to report interest income paid. If you received interest of at least $10 throughout the year, you should expect to receive a copy of this form.
• Form 1099-MISC: This form outlines various forms of miscellaneous income, including rent, prizes, and awards. If you were paid at least $10 in royalties, or $600 in miscellaneous income throughout the year, you should expect to receive a copy of this form.
• Form 1099-NEC: If you are an independent contractor, freelancer, sole proprietor, or self-employed individual, you will receive this form from any businesses that have paid you at least $600 during the year.
• Form 1095-A: This is the Health Insurance Marketplace Statement and it is sent to individuals who have qualified coverage through a Health Insurance Marketplace carrier. Those who receive coverage from the Marketplace may be eligible for subsidized coverage or a tax credit.
• Form 1098: This document outlines any mortgage interest or property taxes paid over the previous year. It will be sent to you by your lender, if applicable. Mortgage interest and property taxes are deductible expenses if you itemize.
• Form 1098-T: This statement reports any qualified educational expenses paid throughout the year. This includes tuition, fees, and required course materials. If you paid qualified educational expenses for yourself or a dependent child, you may be eligible for certain education tax credits.
• Form 1098-E: If you paid more than $600 in student loan interest throughout the year, you will receive this form. Student loan interest is an above-the-line tax deduction.

SEE ALSO: Why Tax Planning is an Important Part of Your Financial Plan

 Year-End Tax Planning Step #2: Investments

If you have investments, there are a number of ways this can impact your tax liability. Here are a few things you’ll want to keep in mind:

• Tax Loss Harvesting: If you have unrealized losses in your taxable investment accounts, you may be able to offset the taxes owed on capital gains. If you have capital losses greater than your total capital gains, you can use the loss to reduce ordinary income by up to $3,000. With this strategy, investors can realize significant savings.
• Net Investment Income Tax: You may be subject to an additional 8% tax on net investment income if your modified adjusted gross income exceeds $200,000 for single taxpayers or $250,000 for married taxpayers. If you know you will be subject to this tax, consider the possibility of deferring investment income to other years.
• Rebalance Your Portfolio: Consider rebalancing your asset allocations if they are no longer in line with your investment objectives. This is particularly important if you have a concentrated equity position that may expose your portfolio to unnecessary risk. In other words, make certain you don’t have all your eggs in one basket.
• Stock Options and AMT: Certain investments, like incentive stock options, can impact your alternative minimum tax liability. It’s important to review this before finding yourself caught off guard during tax season. A qualified financial professional can answer questions you may have on this topic.

Year-End Tax Planning Step #3: Retirement

While having a retirement plan is an important way to save for the future, it is also a helpful tool in minimizing your tax liability. As the New Year approaches, be sure to consider the following steps:

• Maximize Retirement Contributions: If you have access to an employer-sponsored retirement plan such as a 401(k), 403(b), or 457 plan, maximizing your retirement contributions can save you on taxes. That’s because contributions are considered pre-tax and will directly reduce your taxable income at the end of the year. You can contribute up to $22,500 with additional catch-up contributions of $7,500 for those over the age of 50. Note that contributions must be made before December 31st.
• Consider a Roth Conversion: Converting pre-tax funds to a Roth account can be a tax-efficient strategy if you are in a lower tax bracket. Since the funds will be taxable in the year of conversion, be strategic about your timing. Once funds are converted, they will grow tax-free with no required minimum distributions.
• Take Your Required Minimum Distributions: Once you reach age 72, RMDs must be taken from all qualified retirement accounts except Roth IRAs. You have until April 1st of the year following the year in which you turn age 72 to take your first distribution. Every year thereafter, you must take your RMD by December 31st. Be sure to stay keep your eye on these, because if you fail to withdraw the full amount by the due date, the amount not withdrawn is subject to a 50% excise tax.

SEE ALSO: Charitable Giving Strategies for the End of the Calendar Year

Year-End Tax Planning Step #4: Charitable Giving

Giving back to causes and organizations you care about can have positive impacts in many ways. Many strategies can be used to reduce your tax bill while doing good at the same time. Consider the following:

• Gifting Appreciated Assets: Donating highly appreciated assets that have been held for longer than one year has the potential to maximize your charitable contributions while minimizing your tax liability. You can typically avoid capital gains tax on these assets if you donate them to the charity directly, as opposed to selling and then donating the proceeds, so keep this in mind.
• Bunching Donations: If you’re not familiar with this concept, you may want to consider ‘bunching’ multiple years of charitable donations into one tax year if your current deductions are below the standard threshold. This strategy allows you to consolidate your donations for two years into a single year to maximize your itemized deductions for the year you make your donations.
• Taking a Qualified Charitable Distribution (QCD): If you are due to take an RMD that you won’t need to cover your expenses, consider a QCD instead. It allows you to donate to a 501(c)(3) organization that you care about while reducing your overall tax liability. You can make a distribution of up to $100,000 from an IRA to a qualified charity that counts towards your RMD – and it won’t be considered taxable income.
• Consider Using a Donor Advised Fund: A donor-advised fund (DAF) is a giving account that is established at a public charitable foundation. It allows you to make a charitable contribution, receive a tax deduction, and then recommend grants from the fund to the charities of your choice over time. 

Are You Ready for Your Year-End Tax Planning?

Tax planning is complex, and the steps above may not cover all your needs or complement your overall financial planning goals. If you’d like professional guidance on your personal financial moves at year’s end, contact us today. At Resolute Wealth Advisor, our team can help guide you through the New Year and beyond, and we look forward to hearing from you!

At Resolute, we believe in helping clients understand the value they can provide by sharing their wealth to impact those closest to them and causes they are passionate about. (Our firm logo even reflects this conviction – check out The Giving Box story to learn more!) We also know that cultivating a sense of generosity and empathy in children is one of the most lasting legacies a family can leave. Teaching children about philanthropy not only fosters compassion but also helps them understand their roles in making a difference in the world. In this guide focused on how to teach your children about giving back, we explore strategies for fostering a spirit of philanthropy within the family, empowering the next generation to become mindful, compassionate contributors to society.

Why Teach Children About Philanthropy?

Instilling philanthropic values in children helps shape them into responsible, empathetic individuals. It encourages them to appreciate the importance of community, reinforces gratitude for what they have, and creates a foundation for lifelong giving. Studies have shown that children who engage in giving activities are more likely to develop prosocial behaviors, demonstrating empathy, kindness, and a sense of responsibility. Moreover, learning how to teach your children about giving back builds their self-confidence, showing them that they have the power to impact others’ lives.

Step 1: Lead by Example

Children often learn best by observing their parents’ behaviors. Showing them how to teach your children about giving back starts with incorporating philanthropy into your own routine. Whether through monetary donations, volunteering, or other acts of kindness, regularly participating in giving activities demonstrates your commitment to helping others.

Consider involving your children in some of these activities. Take them with you to a volunteer day at a local organization, or explain why you’re donating to a particular cause. If they see you engaged in meaningful acts of kindness, they’ll be more inclined to see giving back as a natural, fulfilling part of life.

SEE ALSO: Tax-Savvy Charitable Gifting Strategies

Step 2: Introduce the Concept of Gratitude

Gratitude is often the first step toward philanthropy. Helping children recognize and appreciate what they have is an essential foundation for understanding why giving back matters. Family discussions about gratitude can deepen this understanding, especially when framed in terms of helping those who may be less fortunate.

One effective exercise is to create a gratitude journal together, where each family member writes down something they’re thankful for each day. This habit can increase awareness of how others may benefit from generosity and naturally open up conversations on how to teach your children about giving back.

Step 3: Choose Causes Together

Involving children in the process of choosing causes to support can make philanthropy more personal and meaningful to them. Start by discussing various causes, explaining them in a way that resonates with their interests and experiences. For example, if they love animals, you could explore options like animal rescue organizations or local shelters. If they’re passionate about the environment, look into organizations dedicated to conservation and sustainability.

This collaborative approach teaches them that their voices and opinions matter, laying a strong foundation for lifelong involvement in philanthropy. Additionally, by involving them in decisions on giving, you’re showing how to teach your children about giving back in a way that aligns with their passions.

Step 4: Set Up a “Giving Fund”

Setting aside a specific amount for donations can make philanthropy a routine part of family life. A “Giving Fund” is a family pot that everyone contributes to over time, with each member having a say in where the funds go. This fund doesn’t have to be large—even small contributions can add up and create significant impact.

Encourage your children to add a portion of their allowance, birthday money, or other savings to the fund. This helps them understand the value of money and the impact their contributions can have, even at a young age. Setting up a Giving Fund is an effective, hands-on approach to how to teach your children about giving back.

SEE ALSO: Charitable Giving Strategies for the End of the Calendar Year

Step 5: Encourage Volunteer Activities

Volunteering as a family can be one of the most impactful ways to demonstrate the importance of giving back. Children can develop a deeper connection to a cause by experiencing it firsthand, whether through preparing meals at a food kitchen, helping clean up a local park, or visiting senior care facilities.

Look for opportunities that allow children to actively participate and see the immediate results of their efforts. For instance, they might help deliver donated items or sort supplies. The direct involvement helps them feel the impact of their actions, reinforcing the lesson on how to teach your children about giving back.

Step 6: Make Philanthropy a Family Tradition

Integrating philanthropy into family traditions makes giving back a lasting part of family culture. Consider dedicating certain holidays or events to giving, like donating food during Thanksgiving or volunteering around the holidays. Alternatively, you could create a new family tradition, such as an annual giving day where everyone shares ideas on which causes to support that year.

Making these activities a tradition builds excitement and continuity. Children come to anticipate these events, and as they grow, they’ll look back on these experiences as cherished family memories tied to meaningful contributions.

Step 7: Teach Financial Literacy Alongside Philanthropy

Understanding financial literacy goes hand in hand with learning how to teach your children about giving back. By helping them understand basic money concepts, like saving, spending, and donating, you can empower them to make informed, intentional decisions about giving as they grow.

Introduce the concept of “Save, Spend, Give” as part of their financial education. Have them divide any money they receive into three categories, allowing them to allocate a portion specifically for giving. This exercise not only strengthens their money management skills but also encourages a balanced approach to saving and spending with an eye toward helping others.

The Rewards of Family Philanthropy

Engaging in family philanthropy has benefits beyond teaching generosity. It fosters a sense of unity and shared purpose, strengthens family bonds, and provides meaningful opportunities to connect with the community. Children develop a positive self-image, learning that they can make a difference, while parents experience the joy of seeing their children grow into responsible, compassionate individuals.

Moreover, when families make giving a shared value, children are more likely to continue these practices as they become adults. They’ll remember the lessons learned and the moments shared, shaping a legacy of kindness and empathy that extends across generations.

Closing Thoughts on How to Teach Your Children About Giving Back

Learning how to teach your children about giving back is a rewarding journey that shapes them into thoughtful, socially conscious individuals. By starting with small steps—leading by example, fostering gratitude, and involving them in giving decisions—parents can nurture a lifelong love for philanthropy in their children. These early lessons in generosity, empathy, and social responsibility help create a future generation of compassionate leaders dedicated to making a difference.

In a world that often feels increasingly complex, the gift of giving back stands as a timeless and meaningful value. By teaching children how to engage in philanthropy meaningfully, parents are not only making an impact today but also sowing the seeds for a brighter tomorrow. If you’d like to discuss a meaningful charitable giving plan for your family, please reach out to us today.

Navigating the complexities of estate planning often feels like a daunting task. This is not only due to the intricate laws and regulations that govern the field but also because of the emotional weight tied to contemplating your own mortality. Nevertheless, addressing estate planning is imperative if you want your assets to be allocated according to your wishes after your passing. For individuals with substantial wealth, the emphasis also includes devising a tax-efficient estate planning strategy to minimize the tax burden on heirs. Tax-efficient estate planning utilizes legal mechanisms and strategies to decrease the amount of taxes owed on an estate, and this article explores the importance of tax planning and several strategies that highlight this approach.

Tax-Efficient Estate Planning: Diminishing Estate Taxes through Gifting

One effective method to reduce estate tax liability involves gifting assets to beneficiaries during your lifetime. The IRS permits individuals to gift a certain amount annually to another person without incurring any gift tax. For instance, if you are married and have two married children and two grandchildren, you and your spouse can give up to $36,000 to each of your kids, their spouses, and the grandchildren in 2024 without having to file a gift tax return or pay any tax. This means you can give a total of $216,000 in tax-free gifts. Over time, these gifts can substantially lower the value of your estate and, consequently, the taxes owed upon it.

Charitable contributions present another avenue for tax benefits, alongside supporting causes you care about. Donating assets to charity can lead to an immediate tax deduction, lessening your present taxable estate. Seeking to create an impact beyond oneself has been an important priority for many of our clients at Resolute Wealth Advisor, and we would be happy to speak with you about strategies for contributing to the greater good while also keeping in mind the importance of tax planning.

Creating a Trust for Tax-Efficient Estate Management

Forming a trust constitutes another strategy for tax-efficient estate planning. Trusts are legal entities that manage and distribute assets according to the grantor’s instructions. Transferring assets into a trust can reduce the estate’s taxable value by effectively removing them from the grantor’s taxable estate.

Trusts vary, allowing for customization to specific needs. For instance, a revocable trust provides control over the assets during the grantor’s lifetime, while an irrevocable trust, which cannot be altered once established, offers substantial tax benefits like estate tax savings and protection from creditors.

Leveraging Life Insurance for Estate Tax Planning

Life insurance serves as a potent instrument in providing for beneficiaries while minimizing estate tax liabilities. Typically, life insurance proceeds are disbursed tax-free to beneficiaries, creating a reliable source of tax-free income.

Life insurance can also facilitate estate tax payments, preventing heirs from liquidating assets to cover these taxes. Purchasing a policy equivalent to anticipated estate taxes can preserve your estate’s integrity, easing the overall tax burden.

Enhancing Retirement Accounts for Tax Efficiency

If you’re exploring the importance of tax planning, don’t forget your retirement savings. Retirement accounts, such as 401(k)s and IRAs, can be pivotal in tax-efficient estate planning. By maximizing contributions to these accounts, you can lower your taxable estate’s value while securing funds for retirement. These accounts offer tax-deferred growth and potential tax deductions, furthering tax benefits.

Designating beneficiaries for these accounts means assets transfer directly to heirs, bypassing the probate process and associated costs.

Utilizing Family Limited Partnerships

Family limited partnerships (FLPs) may be particularly beneficial for high-net-worth individuals seeking tax-efficient estate planning. FLPs enable wealth transfer to family members while attracting valuation discounts for limited partnership interests, given the limited partners’ lack of control over assets. This results in a reduced taxable estate value.

FLPs also offer asset protection from creditors and flexible income and capital gains distribution among family members, supporting efficient tax planning.

Embracing Charitable Trusts in Estate Planning

Charitable trusts offer another strategy for reducing taxable estates. A charitable remainder trust (CRT) allows asset transfer to a trust, providing income to the grantor or beneficiaries for a set period before transferring the remaining assets to a charity. This strategy yields an immediate tax deduction for the charitable contribution and a reduction in taxable estate, alongside securing an income stream.

The Importance of Tax Planning in Estate Planning Success

Tax planning is a vital component of comprehensive estate planning, especially for those with significant assets. By integrating tax planning into your strategy, you can uncover opportunities to reduce tax liabilities, enhancing your financial well-being. This process requires regular review and adjustment in response to evolving financial situations and tax law changes, so revisit it as needed.

Embrace tax planning within your estate planning strategy to navigate the complexities of estate taxes effectively. The Resolute Wealth Advisor team of financial professionals is prepared to assist you in exploring tax laws and crafting personalized solutions to help you optimize your financial well-being and estate planning success. Would you like to know more? Contact us today to take the first step!

As the calendar year approaches its end, many people find themselves not only preparing for the holiday season and reminiscing about the past year but also embracing the profound sense of generosity that accompanies this festive time. At Resolute, we encourage all our clients to discover opportunities to give where and when they can. Our logo even includes what we call The Giving Box. So, if you’re interested in strategies for year-end charitable giving, you’ve come to the right place. This article explores ways you can embrace the holiday spirit and create a meaningful difference in causes close to your heart. Whether you are driven by the joy of giving or seeking tactical methods to amplify your influence, this article will delve into a range of year-end charitable giving approaches.

Year-End Charitable Giving Tip #1: Put Your Philanthropy into Your Budget

During this time of year, many charitable causes touch our hearts deeply. The fact is, there is much need in our communities, and the urge to be as generous as possible can be overpowering. Nevertheless, it’s essential to safeguard your financial stability and make certain that your philanthropic actions, however compelling, do not jeopardize your financial security. So, protect your finances by incorporating philanthropy into your budget as a dedicated category. This not only allows you to prioritize your generosity but also establishes limits to safeguard your financial stability.

Year-End Charitable Giving Tip #2: Determine Your Values and Motivations for Giving Back

To truly achieve the charitable impact you want, it’s important to make deliberate choices and prioritize only a select few organizations or causes. Devoting time to crafting a catalog of values that deeply resonate with you and then harmonizing them with a grand mission for your charitable contributions can give you a well-defined path for navigating the world of philanthropy. This process also empowers you to recognize that, while each charitable venture holds merit, it’s entirely acceptable to remain true to your personal convictions and principles, even if it means declining certain opportunities.

Once you’ve narrowed down your core values, be sure to research organizations before making a commitment. To aid in your decision-making process, here are a few factors to consider:

Organizational History: Examine the organization’s track record. Is it a newly established entity, or does it have a long-standing presence?

Program Expenses vs. Administrative Costs: Assess the organization’s financial transparency. How much of their funds are allocated to programs that directly support their mission, and how much goes to administrative costs?

Reputation and Community Standing: Look into the organization’s reputation within its community. What do people and other stakeholders say about its impact and integrity?

Trust and Alignment: Evaluate how much you trust the organization’s leadership and whether their vision for the future aligns with your personal goals.

To help with the above research, utilize online resources like:

• Charity Navigator
• BBB Wise Giving Alliance

Year-End Charitable Giving Tip #3: Utilize Tax-Advantaged Strategies

Year-end charitable giving doesn’t have to just be about generosity; it can also be a strategic financial decision. This doesn’t take away from your charitable impact in any way. In fact, it may ensure that you have even more to give in the future. Taking advantage of tax incentives is smart because it can help maximize the impact of your donations now and in the future. Tax-advantaged giving options include:

Donor-Advised Funds (DAFs): DAFs allow you to make a lump-sum contribution and recommend grants to specific charities over time. You receive an immediate tax deduction when you contribute to the fund, and it can be a powerful tool for spreading your giving over the long term.

Qualified Charitable Distributions (QCDs): If you’re over age 70 ½ and have an Individual Retirement Account (IRA), you can donate up to $100,000 directly to a qualified charity. These donations are not counted as taxable income, potentially reducing your tax liability, and they satisfy your Required Minimum Distribution limits.

Appreciated Securities: Donating appreciated stocks or other assets offers potential advantages for both charitable gifting and tax efficiency. This approach helps donors avoid capital gains taxes for selling the investment. Instead, the investment is given directly to the charity.

Charitable Remainder Trusts (CRTs): A CRT allows you to donate to a trust that pays an income stream to you or your designated beneficiaries. After a specified period or upon your death, the remaining assets go to the charity of your choice.

Year-End Charitable Giving Tip #4: Include the Whole Family

We feel the impact of our finances on every facet of life, and it makes sense to discuss money matters with our families. Participating in conversations regarding family philanthropy can function as a powerful method for transmitting your cherished financial values to the younger generations, including your children and grandchildren. Despite the personal nature of philanthropy and financial topics, sharing your beliefs can foster profound connections and the potential for collaborative, impactful endeavors now and long after you’re gone.

Are You Looking for Year-End Charitable Giving Strategies to Suit Your Goals?

Engaging in charitable giving holds the potential to bring about a significant positive influence on the world, all the while offering the prospect of tax advantages. With a purposeful and considerate approach to your philanthropic endeavors, you can enhance the efficiency of your contributions. Your generosity can lay the foundation for a brighter future for those who require assistance, leaving behind a lasting legacy of empathy and support, not only during this holiday season but in the days to come.

Would you like to discuss how to give with more intention and in a way that supports a smart financial strategy? We can help! At Resolute, charitable giving is a foundational aspect of our firm. We proactively seek out opportunities to align our clients’ financial plans with their personal values. Give us a call today and let’s begin a conversation about how we can build you a strategic giving plan that optimizes your impact and your financial benefits, too.