Leadership Development...
is the key to 21st. Century Success in business. Harness the power of your peers to help you develop your employees, managers & successors!
| D-I-Y Strategic Planning...
allows you to make strategic decisions about your company's direction every time - all with the help of your peers!
| You'll Make Better Decisions...
when your ideas are challenged and your assumptions tested, continually and strategically - by a caring group of your peers!
|
|
How To Increase Your Income, Lower Your Taxes And Help Your Favorite Charity
By Robert D. Cavanaugh, CLU
Given the fact that most seniors are interested in a secure income, reducing risk and lowering taxes, here is a planning technique to consider if you are trying to increase your income.
Maybe you have a CD that is coming up for renewal and you discover the rate is going to be lower. You could have some stocks or mutual funds that were invested for growth and are thinking about selling some off and re-investing in something that would pay you an income. The only reason you haven’t sold them is that you don’t want to pay the capital gain.
I would suggest including a charitable gift annuity in your list of options.
A charitable gift annuity is a combination of a gift to charity and an annuity. For older people, annuity rates may be 8%, 9% or even higher. Since part of the annuity payment is a tax free return of principal, the gift annuity may provide you with a substantial income. The combination of partially tax free income and the initial charitable deduction makes this planning device attractive.
While this arrangement has its own unique benefits, the rate of return is less than if you had bought a commercial immediate annuity. Therefore, your decision to use a gift annuity should include a desire to eventually leave money to a qualified charitable organization that you have an interest in, such as a church, school, hospital, etc.
Gift annuities are easy to set up. You simply transfer
Our articles continue...
|
property to the charity and the charity promises to pay a given amount monthly, quarterly, semi-annually or annually to you for as long as you live. Alternatively, you could elect to have the payments paid to you and another person for as long as you both live. Or you could elect to have the payments made to you for the rest of your life and then to the second person for the rest of their life. But the maximum number of people per gift annuity is two. Gift annuity rates are set by the American Council on Gift Annuities. Charities don’t have to use these rates, but most do. So you don’t have to out shopping for the best rate. Make your choice based on the charity that you would like to support. There are two tax issues that you should take into consideration when comparing a gift annuity to your other alternatives. The first is that if you fund the gift annuity with cash, part of the payment you receive is taxed (as ordinary income) and part of it is not taxed as it is treated as a return of principal. If you fund it with appreciated property, and are the recipient of the income, part will be taxed as capital gain, part as ordinary income and part could be treated as a return of principal and not taxed. However, if you live past your life expectancy, all later annuity payments will be ordinary income. The second tax issue is that when you give the charity your asset in exchange for a life income, you get a large income tax deduction. For most people, this income tax deduction is so big it cannot be taken in one year. So there are provisions to spread the deduction out over the year of your donation and five more. Your accountant can tell you if this will eliminate income taxes for the next 6 years or not. Chances are good that it will. Please note that I am only giving general guidelines about taxation. Before you set up a gift annuity, you should sit down with your tax advisor to determine the exact tax ramifications for your situation. There are a number of charitable gift annuity options and applications. This brief overview has given you some of the basics. If this seems like it may fit, contact the charitable organization of your choice and get a proposal. Then sit down with your accountant and financial planner and have them help you compare a gift annuity with your other options. Article Source: http://www.article-matrix.com Robert D. Cavanaugh, CLU is a 36 year financial and estate planning veteran and author of the free newsletter, “The Estate Preservation Advisor”. To subscribe and geta free video of one little known planning concept, go to theestatepreservationadvisor.com/freevideo.htm
Here are some more financial planning articles...
FINANCIAL PLANNERS! HOW DO YOU TELL THE DIFFERENCE?
By Peter F. Baigent CFP, CLU, CHFC, RFP
First Published Fall 1993 Eight years ago I was discussing a Financial Planning recommendation with a Judge. He made the comment that he was reluctant to accept recommendations from a Read more...
|
Where Does Your Money Go? Taxes
By Terry J. Rigg, Fri Dec 9th
Trying to stay within the theme of Budget Stretcher, I thought aseries of articles on knowing where your money is going may helpsome of you understand just how much you pay on certain Read more...
|
What Services Does Your Financial Planner Offer?
Financial Planning & Accounting For Small Business Your answerableness is to share your goals, endanger participation, and men the expertise your adviser needs to manage your total Read more...
|
What Past experience Does Your Accountant Acquire?
Financial Planning & Accounting For Small BusinessBusiness and exact financial planning is so free and easy to overlook.Financial planning is nix a product.Financial planning Read more...
|
| financial planning budgeting news: |
Federal Reserve offers gloomy outlook for 2009
The Federal Reserve Bank of Cleveland, in its “beige book” released Wednesday, presented a gloomy outlook for the district in most sectors. Bally Total Fitness files for Ch. 11
Health club company Bally Total Fitness and certain affiliates have filed for Chapter 11 bankruptcy protection, the company said Wednesday. Tri-State mediocre in education report card
Ohio, Kentucky and Indiana turned in less than stellar performances in the National Center for Public Policy and Education’s 2008 “Measuring Up” report card. Cintas closing two Kentucky plants
Cintas Corp., citing lowered demand, will close two Kentucky manufacturing plants, eliminating almost 300 jobs, the company said. (CTAS) Hillenbrand issues forecast for fiscal 2009
Hillenbrand Inc. said it expects to meet or top its 2008 revenues and profits, along with analysts’ expectations, for its 2009 fiscal year. (HI) Gillen named president of Duro Standard Products
John Gillen has been named president and chief operating officer of Duro Standard Products Co., the largest operating unit of Duro Bag Manufacturing Co., the company said Wednesday. Survey: Ohio job scene more rosy for IT personnel
Chief information officers in Ohio’s three largest cities plan to hire in early 2009, according to the Robert Half Technology IT Hiring Index. (RHI) Procter & Gamble buys stake in British online grocer Ocado
Procter & Gamble Co. has acquired a 1 percent stake, for $7.5 million, in a British online grocer, with designs on better understanding how consumers shop online. Park receives initial OK for federal capital infusion
The U.S. Treasury has given preliminary approval to Park National Corp.’s application to participate in the government’s capital purchase program, which would put the bank in line for an injection of up to $100 million. (HBAN) (FITB) (FFBC) (KEY) Fifth Third moving Dayton headquarters
Fifth Third Bank of Western Ohio is abandoning the Fifth Third Center in downtown Dayton and will relocate its Dayton headquarters to One Dayton Centre at the corner of Third and Main streets in late 2009. (FITB)
Blockbuster to sell concert tickets
Movie and game entertainment company Blockbuster Inc. is branching out and aligning itself with Live Nation, one of the largest marketers and providers of live concerts. (BBI)
<p><a href="http://feeds.feedburner.com/~a/bizj_houston?a=mIGLwf"><img src="http://feeds.feedburner.com/~a/bizj_houston?i=mIGLwf" border="0"></img></a></p><div class="feedflare">
<a href="http://feeds.feedburner.com/~f/bizj_houston?a=0q5bO"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=0q5bO" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/bizj_houston?a=RChxo"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=RChxo" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/bizj_houston?a=iV2yo"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=iV2yo" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/bizj_houston?a=5KqJO"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=5KqJO" border="0"></img></a>
</div>Main Street paves way to issue shares
Main Street Capital Corp. has filed a shelf registration to allow the private equity company to issue as much as $300 million in common shares. (MAIN)
<p><a href="http://feeds.feedburner.com/~a/bizj_houston?a=fszzZl"><img src="http://feeds.feedburner.com/~a/bizj_houston?i=fszzZl" border="0"></img></a></p><div class="feedflare">
<a href="http://feeds.feedburner.com/~f/bizj_houston?a=G9JzO"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=G9JzO" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/bizj_houston?a=y9mjo"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=y9mjo" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/bizj_houston?a=zZLko"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=zZLko" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/bizj_houston?a=U05BO"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=U05BO" border="0"></img></a>
</div>FMC achieves new depth record
FMC Technologies Inc. has set a new world record of 9,356 feet for subsea deepwater completion. (CVX) (BP) (FTI) (APC)
<p><a href="http://feeds.feedburner.com/~a/bizj_houston?a=OQTiMh"><img src="http://feeds.feedburner.com/~a/bizj_houston?i=OQTiMh" border="0"></img></a></p><div class="feedflare">
<a href="http://feeds.feedburner.com/~f/bizj_houston?a=flWQO"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=flWQO" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/bizj_houston?a=IFoco"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=IFoco" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/bizj_houston?a=mjEho"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=mjEho" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/bizj_houston?a=LxV2O"><img src="http://feeds.feedburner.com/~f/bizj_houston?i=LxV2O" border="0"></img></a>
</div>
|
Financial planning is a process of managing your finances to help you make the most of your money to achieve your goals. You may be preparing for retirement or want to make sure you can cover the cost of educating your children. ...
|
|
