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Author: Resolute Wealth Advisor Team

Charitable Giving Strategies for the End of the Calendar Year

Written by Resolute Wealth Advisor Team on . Posted in Estate & Legacy Planning.

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:

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.

Protect Your College Student with These Medical and Financial Documents

Written by Resolute Wealth Advisor Team on . Posted in Family & Education Planning.

As we approach that time of year when fresh high school graduates are joyfully celebrating their achievements, many families find themselves preparing for the next milestone: their child’s departure for college. While it is indeed an optimistic and thrilling period, it can also evoke mixed emotions and concerns for parents. We naturally fret about our children’s safety, well-being, and their ability to adapt to newfound freedom and responsibilities as a college student. However, proactively establishing four essential documents before they leave home can give you more peace of mind. Read on to learn more.

Why These Documents Are Important

Before we discuss the specific documents below, I want to be clear about why they matter. Parenthood is a lifelong journey that transcends age limits. Despite this, it is important to recognize that when our children reach the age of 18, they are considered legal adults. While we have always embraced the role of protectors and decision-makers for our children, the attainment of adulthood comes with a shift in our rights. Although we may have complete faith in their ability to make independent choices, an unexpected emergency situation can present a challenge, especially during the college years.

You are likely familiar with the Health Insurance Portability and Accountability Act (HIPAA), which is about health information privacy. It sets guidelines for medical providers regarding the disclosure of patient information. While there are provisions for medical professionals to exercise judgment during emergencies, they may hesitate to do so if they lack an established relationship with the patient or their family – a common occurrence when your child is away at college.

While the majority of college students never encounter a medical emergency, it can be comforting to take proactive measures. The presence of HIPAA regulations means that in the event your child requires immediate hospitalization, you will not have immediate access to their medical records, nor will you possess the authority to make medical decisions on their behalf. Without the appropriate documentation in place, healthcare providers are bound by law and unable to disclose your adult child’s information, even if they genuinely want to assist you.

By understanding the implications of these circumstances and taking preemptive action, you can navigate potential challenges with greater peace of mind.

Four Documents to Help You and Your Child Prepare for College

To ensure that you maintain access to vital health information and have the ability to make informed decisions in the best interest of your child, whether they are in college or facing any other emergency situation, it is crucial to have the following essential documents in place:

1.     Medical Power of Attorney

To ensure you have the necessary authority to make medical decisions on behalf of your child if they become incapacitated, it is essential to establish a Medical Power of Attorney, also known as a healthcare proxy. This legally binding document grants you the role of an “agent” with the authority to act on your child’s behalf when they are unable to make medical decisions themselves.

The American Bar Association offers a comprehensive Health Care Advanced Planning Toolkit, which includes a Medical Power of Attorney form that can be of great assistance. Alternatively, you can consult an estate planning attorney to have a customized document created. It’s important to note that the specific regulations governing Medical Power of Attorney vary from state to state, and certain states may require two witnesses who are not related to the family or the involvement of a notary public. Additionally, your child’s college may have their own form available for this purpose.

2.     HIPAA Authorization

In many cases, a Medical Power of Attorney (POA) form encompasses a HIPAA authorization clause. However, if your specific form lacks this provision, it is crucial to acquire a separate HIPAA authorization form before your child departs for college. This legally binding document enables healthcare providers to share pertinent information regarding your child’s health with you. It’s important to recognize that these authorizations can also safeguard your child’s privacy. For instance, your son or daughter may prefer not to disclose details about sensitive topics such as sex, drugs, mental health, or other personal matters they wish to keep confidential. Nonetheless, the authorization form can still grant you access to such information in emergency situations if your child desires you to be informed.

3.     Durable Power of Attorney

By obtaining this type of Power of Attorney (POA), you, as a parent, are granted the authority to serve as your child’s “attorney-in-fact” or “agent,” extending beyond the realm of medical incapacitation. This comprehensive POA empowers you to legally handle various aspects of your child’s affairs, such as engaging in contractual agreements and accessing their bank accounts. This becomes particularly significant if you need to address financial responsibilities, such as paying your child’s bills or managing their financial activities, during a period of their incapacitation.

4.     FERPA Release

Another acronym you might be familiar with is FERPA, which stands for the Family Educational Rights and Privacy Act of 1974. This legislation was enacted to safeguard the confidentiality of a student’s educational records. Under this law, parents are generally restricted from accessing their child’s grades or transcripts. However, there is an option for your child to sign a release, granting their college permission to disclose educational records to you without requiring prior consent.

While this documentation may not directly pertain to emergency medical situations, it can prove valuable if a student’s injury or illness significantly affects their academic performance and necessitates your communication with university staff on their behalf. Additionally, for parents who are financially supporting their child’s education, knowing their academic progress may hold importance.

A Note on Financial Literacy

While it is helpful to have the above documents in place for emergency scenarios during your child’s college years, it’s important to remember that they will also encounter numerous minor challenges during this transitional phase. Developing financial literacy becomes equally significant, and these resources can facilitate open communication between you and your child about money matters while equipping them with strategies for making sound financial choices.

If you would like to delve deeper into any of the topics discussed in this article or explore other financial planning concerns, please don’t hesitate to contact us to schedule a conversation. At Resolute, we believe it’s important to help our clients feel informed and empowered. If you’d like to learn more about how we can serve you, please reach out today!

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Client Profile – Sophia

Written by Resolute Wealth Advisor Team on . Posted in Retirement Planning.

Sophia has quickly experienced success as an entrepreneur in the healthcare field.  While she is fully dedicated to her career in helping others, she feels confident in knowing that she is doing what she can to continue to grow both personally and professionally.  At this stage of life, money is of no real concern to Sophia; she has everything that she needs and doesn’t ever feel that she is “just trying to get by.”

While out to lunch with some friends one day, the conversation shifted towards retirement.  Being in her mid-thirties, retirement always seemed so far off for Sophia, and she hadn’t taken the time to consider what retirement meant to her, let alone begin planning for it.  She’s a successful entrepreneur in the healthcare field, she shouldn’t have to worry about her money.  Her friends agree; they’re making great money and shouldn’t have to worry about much in terms of their finances, right?

But Sophia understands the importance of planning ahead; planning is what helped her get through medical school and planning is what helped her launch her company.  So why shouldn’t she start planning for the next stage of her life?

With Resolute MINDSET,, Sophia was able to work with one of our advisors to discuss what was truly important to her when it comes to her finances, her ambitions, and, ultimately, her future.  Throughout our process, we were able to determine ways that Sophia could not only identify the goals that she wants to achieve throughout her life and career, but also to put an actionable plan in place to help guide her towards success.

Throughout our collaborative and personalized process, Sophia was able to partner with her advisor to plan strategically for her business, talk about her retirement goals and ambitions, and even work on establishing a fund where Sophia could help give back to her local community and support the causes that matter most to her.

The best part?  Sophia is given a one-page financial plan that highlights her overall situation in a snapshot.  She also feels relieved in knowing that her advisor had given her recommendations of what she should look to accomplish over the next five years of her career.  At that point, Sophia can revisit her financial plan for a MINDSET Milestone meeting to begin strategically planning for the next stage of her life.

So, for Sophia, she has peace of mind in knowing that she is doing more than simply assuming that everything is “OK” when it comes to her future; she’s taking ownership of it.  And when her friends and colleagues bring up the topic of retirement next time, she can tell them that she is working towards retiring earlier than she could have ever imagined.

Sophia changed her MINDSET when it came to planning for retirement, and she now has a partner with her financial planner that will help hold her accountable and have a vested interest in her long-term success.

The client case studies, statements, and opinions presented on our website are applicable to the individuals depicted.  The above case study was given by a current client, and the individual mentioned was not compensated with cash, or non-cash compensation, nor were these individuals provided with free services or any other benefits in exchange for said statements.  The case studies, statements, and opinions are representative of actual client experiences and may not be representative of the experience of others as exact experience will be unique and individual to each client.  There are no material conflicts of interest on the part of the individual(s) giving their story and resulting from the person’s relationship with Resolute Wealth Advisors, therefore has no incentive to recommend the adviser. Performance will vary, and past performance is in no way an indicator of future success.

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Client Profile – Alysha

Written by Resolute Wealth Advisor Team on . Posted in Retirement Planning.

Alysha, age 35, is married with two children and has recently gone through a career transition.  While she understands that her financial situation has changed, she acknowledges the fact that there are many different aspects of her financial life that she could focus on, but she doesn’t know where to start.  She has tried to work with other advisors in the past, but most of these advisors required her to have investment assets to manage before gaining access to advice.

However, she understands the importance of planning early when it comes to retirement and taking into consideration the many decisions that will have to be made prior to that time.  Saving for college? Cashflow concerns? What about early retirement?

With Resolute MINDSET™, Alysha was able to answer these questions, and many others that she had not even considered.  Throughout our consultative process, we were able to meet with Alysha to learn more about her goals, objectives, and even some of the challenges that she feels she will face on her path towards financial success.

As a result, Alysha was able to work with our advisors to build a financial plan that provides oversight and recommendations that go further than just her investment portfolio.  Throughout our process, we were able to identify areas where she could focus on improving throughout her overall financial situation.  This included establishing College Savings plans for both children, identifying her annual savings goal, and discussing the potential of an early retirement.

While retirement is many years away for Alysha, with Resolute MINDSET she was able to gain access to an advisor who could help her create a plan to not only discuss her path to retirement, but to also guide her on the key steps needed to keep her on track to achieve her goals along the way.

With Resolute MINDSET, we don’t focus on investment assets, nor do we have a minimum amount of assets that you must have to work with us through this MINDSET process.  We believe in providing you with an in-depth and customized financial plan that helps you take care of today’s challenges so that you can develop your MINDSET towards a successful, exciting, and rewarding life, regardless of your age or how much money you have.

The client case studies, statements, and opinions presented on our website are applicable to the individuals depicted.  The above case study was given by a current client, and the individual mentioned was not compensated with cash, or non-cash compensation, nor were these individuals provided with free services or any other benefits in exchange for said statements.  The case studies, statements, and opinions are representative of actual client experiences and may not be representative of the experience of others as exact experience will be unique and individual to each client.  There are no material conflicts of interest on the part of the individual(s) giving their story and resulting from the person’s relationship with Resolute Wealth Advisors, therefore has no incentive to recommend the adviser. Performance will vary, and past performance is in no way an indicator of future success.

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