December 2011 Personal Finance Newsletter
December 20, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The December personal finance newsletter is now available. It includes information on a new student loan repayment program going into effect in January 2012, gift tax strategies, and tips on keeping your online accounts secure. Plus, for those that enjoy history, there’s some perspective on stock market cycles and the effect of being in and out of the market at particular times. Please click here to read the newsletter. Happy holidays!
August Personal Finance Newsletter
August 15, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The August personal finance newsletter is now available. It features a Q&A on the debt ceiling, downgrade, and market response. Plus there’s a follow-up on the ABCs of Trusts article from last month’s newsletter, suggestions on talking with your high school student about college costs, an analysis of the real costs of keeping your long-term investment assets in cash, an overview on the difference between Medicare and Medicaid, and more. To read the newsletter, click here.
July Personal Finance Newsletter
July 14, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The July personal financial planning newsletter is now available.
Because of the tumultuous investment markets and economic uncertainty, the newsletter includes two investing columns — one a recap of the second quarter market performance with a look forward, and another by Jim Parker with Dimensional Funds providing some compelling data on the importance of maintaining investment discipline.
The newsletter also has information on the new IRS mileage rates for the second half of 2011, a summary of how A/B and A/B/C trusts work for estate planning, and an overview of the tax and policy issues involved in taking a loan from your life insurance policy.
Plus, there’s an invitation to my social security workshop this coming Tuesday at the library.
Click here to read the newsletter.
April Personal Finance Newsletter
April 15, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The April 2011 Personal Finance Newsletter is now available. This month’s newsletter includes a reminder on Monday’s 2010 IRA contribution deadline and information on social security statements being suspended. We also have articles on the estate tax exemption portability and the opportunity for some to do Roth conversions inside their 401(k) plans. Plus — it’s my pleasure to introduce Keener Financial Planning’s new Planning Assistant, Megan Horst. To read the newsletter, please click here.
March Personal Finance Newsletter
March 14, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The March personal financial planning newsletter is now available. It includes an update on the investment market, tips on cutting discretionary spending to build your cash reserve, planned charitable giving, and social security survivors benefit. There’s also a special guest column from attorney Rania Combs on the complexities of dying intestate (without a will) for individuals in blended families in Texas. Click here to read the newsletter.
January 2011 Personal Finance Newsletter
January 14, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The January newsletter is now available with a 2010 investment market recap, a humorous look at investing resolutions for the new year, and details on the estate tax changes enacted in December. It also includes an announcement of topics for the Keller Public Library personal finance workshop series for January – June. Click here to read the newsletter.
November Personal Finance Newsletter
November 10, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The November personal finance newsletter is now available. It includes information 2011 retirement plan contribution limits — most are unchanged, but if you’re right on the edge of having too much income to make Roth IRA contributions, you should check out the slightly increased income phase-out ranges. The newsletter also covers inheriting propert in 2010 and what the one-year hiatus from the estate tax means to the step-up basis rules. In addition, we have info on homeowners insurance and liability coverage, a summary of the latest trends in college pricing and financial aid, and an investment market update. To read the newsletter, click here.
January 2010 Newsletter
January 12, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The January 2010 newsletter is now available. Beginning in 2010, it will be published the second week of each month. This month’s newsletter includes a brief 2009 market update, an update on the estate tax for 2010, how to conduct a home inventory, and more. Click here to read it.
2010 Key Numbers
December 2, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The key numbers guide from Forefield has been updated for 2010. Not a lot of changes from last year, but still a convenient reference. It includes limits on retirement plan contributions, tax brackets, tax credit and deduction phase-outs, social security benefits, medicare, and much more. 2010 Key Numbers
Charitable Giving as Part of Your Estate Plan
November 3, 2009 by Jean Keener, CFP, CRPC, CFDS · 1 Comment
As the holidays approach, it’s a good time to consider charitable giving as a potential part of your estate plan. Giving provides a sense of personal satisfaction, and it can be beneficial from a financial planning perspective.
If you’re one of the 2% of Americans currently subject to the estate tax, planned charitable giving can be a powerful estate planning tool. Even if estate taxes aren’t an issue for you, charitable giving can still provide a satisfying opportunity to leave a financial legacy. And a well-planned gift can maximize its benefits to you and the charity.
Usually when people leave a gift to a charity as part of their estate, it’s an organization they’ve had significant contact with during their lifetime. However, it’s still a good idea to check out how the charity uses donated funds prior to planning for a substantial estate donation. You can do this through a charity tracking organization like Charity Navigator or by asking questions directly of the charity about their use of funds, the percentage of donations that go directly to programs, and how your gift would be used.
Once you’ve selected the charity or charities, here are some of your options for gifting techniques.
Put the charitable gift in your will
The easiest and most direct way to make a charitable gift is by an outright bequest of cash in your will. Making an outright bequest requires only a short paragraph in your will that names the charitable beneficiary and states the amount of your gift. The outright bequest is especially appropriate when the amount of your gift is relatively small, or when you want the funds to go to the charity without strings attached.
Name the charity as beneficiary of an IRA or retirement plan
If you have funds in an IRA or employer-sponsored retirement plan, you can name your favorite charity as a beneficiary. Naming a charity as beneficiary can provide double tax savings. First, the charitable gift will be deductible for estate tax purposes. Second, the charity will not have to pay any income tax on the funds it receives. This double benefit can save combined taxes that otherwise could eat up a substantial portion of your retirement account.
Use a charitable trust
Another way for you to make charitable gifts is to create a charitable trust. There are many types of charitable trusts, the most common of which include the charitable lead trust and the charitable remainder trust.
A charitable lead trust pays income to your chosen charity for a certain period of years after your death. Once that period is up, the trust principal passes to your family members or other heirs. The trust is known as a charitable lead trust because the charity gets the first, or lead, interest. You would use the charitable lead trust when you’re optimistic about the future performance of the investments you place in the trust.
A charitable remainder trust is the mirror image of the charitable lead trust. Trust income is payable to your family members or other heirs for a period of years after your death or for the lifetime of one or more beneficiaries. Then, the principal goes to your favorite charity. The trust is known as a charitable remainder trust because the charity gets the remainder interest. Depending on which type of trust you use, the dollar value of the lead (income) interest or the remainder interest produces the estate tax charitable deduction. A charitable remainder trust takes advantage of the fact that lifetime charitable giving generally results in tax savings when compared to testamentary charitable giving.
However you choose to give, planning for it in advance and considering its overall impact both to your estate and the charity can provide maximum impact for your generosity.