4 Tax Planning Tips for High-Net-Worth Families
Tax planning might be complex, but it’s also essential—especially for high-net-worth families, where missing tax breaks or failing to optimize income could cost significant dollars, maybe millions, over a lifetime. And even in the short term, with the highest marginal federal tax rate sitting at 37% for 20241 (plus additional state and local taxes), a lack of tax planning could mean you keep less than half of every dollar you earn. Here are four tax planning tips that may help you optimize your finances.
Allocate and Diversify Your Taxable Assets
High-net-worth families tend to have a broader range of assets than other families. These assets may include stock, real estate, alternative investments, businesses, and assets held in trust. By putting each asset in a helpful category for tax purposes, you’ll be able to manage your tax liabilities.
For example, many investors hold tax-efficient investments like municipal bonds, ETFs, and tax-managed stock funds in taxable accounts. Because these underlying investments are already tax-efficient, paying taxes on any earnings at year-end won’t take much of a bite out of your investment. Meanwhile, tax-inefficient investments (or those that tend to lose more of their returns to taxes) are possibly held in tax-advantaged accounts, like 401(k)s and IRAs, where you might be more strategic about when to take withdrawals.
Consider Other Tax-Efficient Investment Strategies
Along with effectively allocating your taxable assets, it’s important to take advantage of tax-efficient investment strategies, such as tax-loss harvesting, to offset gains with losses and manage capital gains tax. Consider investments that generate qualified dividends and long-term capital gains since these are typically subject to lower tax rates than short-term capital gains or regular income.
Plan Your Estate
Estate planning is important at all income levels, as it helps guide your assets to those you want to have them. But for high-net-worth families, creating a comprehensive estate plan becomes even more crucial, as estate taxes may come into play.
If you pass away in 2024 or 2025 and leave more than $12.92 million (the current exemption) to your loved ones, they may be required to pay taxes on any amount above this exemption. And remember, you are allowed to give your loved ones up to $17,000 per year (or $34,000 if you’re married)2 without it counting against this lifetime exemption, so feel free to begin transferring assets while still alive.
Shift Your Income
High-net-worth families may use income-shifting strategies to distribute income among family members in lower tax brackets. This might involve setting up family partnerships or trusts—but be careful about the “kiddie tax” rules that apply to unearned income for children under 18.
It’s important to remember that these are general guidelines, and tax planning should be tailored to your specific financial situation and goals. Because tax laws change almost every year, you must stay informed of these changes and adapt your tax strategy accordingly.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
The tax-loss harvesting and other tax strategies discussed should not be interpreted as tax advice and there is no representation that such strategies will result in any particular tax consequence. Clients should consult with their personal tax advisors regarding the tax consequences of investing.
The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
Footnotes
How Gatewood Structures Our Client Care Teams
When Gatewood Wealth Solutions became independent, it offered us the opportunity to make our own decisions as a firm when it came to how we cared for our clients — from the technology we used to the services we offered.
As Chief Planning Officer, I worked closely with the Gatewood Leadership Team to carefully craft a Client Care Team structure that suited our clients’ needs. To me, this structure is one of our most important differentiators in the market.
What Do We Mean by “Team Structure?”
The phrase “team structure” can be used in reference to a number of team configurations. But to us, “team structure” refers to a true ensemble structure in which all teams work under the same roof to serve our clients consistently with uncompromising quality. To accomplish this, we carefully divided our clients according to financial life complexity into three groups:
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Private Client Care: Ultra-high net worth, ultra-high financial complexity.
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Client Care Plus: High net worth, high financial complexity.
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Client Care: Average net worth and financial complexity.
Within those segments, we designated specific Client Care Teams to serve a particular number of families, so they could familiarize themselves with precisely what typical client needs are within those segments.
Finally, regardless of segment, each of our Gatewood Wealth Solution client families has their own Client Care Team served by four professionals collaboratively working together to guide clients towards their financial goals. They include:
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Wealth Advisor
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Wealth Planner
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Wealth Coordinator
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Portfolio Strategist
We intentionally structured our team this way, so that no financial plan or investment portfolio is ever reliant on just one person. If something ever happened to one of the advisors — whether retirement, promotion, death, or any other unforeseen circumstance — there would always be another team member familiar with the client’s goals, objectives, and moving pieces. This continuity plan ensures we can deliver on our promises to the families we serve for generations to come as a truly enduring firm. While some firms take the traditional, one-client-to-one-advisor approach, we set the standard on a true family-to-firm approach.
Below is a breakdown of each role, what the responsibilities are, and why we structured them this way:
Wealth Advisors
As your primary relationship manager, your Wealth Advisor is responsible for enhancing your experience with our firm. His/her main goal is to ensure your family is receiving excellent Client Care, especially during times of crucial or complex life decisions.
Contact them with questions on:
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Your experience with Gatewood
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Changes to your high-level goals and strategy
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Navigating all of the resources Gatewood has to offer
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Introductions to outside, trusted professionals
Wealth Planners
Your Wealth Planner is your family’s personal Certified Financial Planner® professional. The CFP® designation demonstrates their proficiency in financial planning, risk management, investment, tax efficiency, retirement, and estate planning advising. They create and maintain your personalized financial plan that aligns with your goals and aspirations, going beyond simply providing day-to-day services. He or she will be your go-to for most questions!
Contact them with comments or questions on:
Wealth Coordinators
Your Wealth Coordinator takes care of the administrative details of your accounts, from information updates to paperwork. They are the glue that holds the team together, and they work tirelessly to ensure your family has its financial details covered.
Contact them with questions on:
Portfolio Strategists
Each Portfolio Strategist is a member of the Gatewood Investment Committee. This group works behind the scenes every day to ensure we’re positioning your investments in a way that helps you pursue your goals.
With this Client Care Team structure, you can be confident we’re proactively watching out for your family’s financial needs — and you’ll know exactly to whom to go with your questions. We’re proud of our team and confident in their ability to provide you with a high-quality experience. We always welcome feedback, so feel free to share any ideas or feedback with your Wealth Advisor.
Ringing in the New Year in Your Golden Years
Whether you are just entering your golden years or are already several years in, setting goals to stay on track and maintain your health, happiness, and finances is essential. So why not use the New Year’s holiday to turn these goals into resolutions you will work on for the upcoming year? Ready to get started tackling some new goals to help improve your mind, body, and finances? Below are a few resolutions worth considering.
Create a Budget
Creating a new budget each year is an excellent idea as it will allow you to review your expenses and income, see areas where you may need to cut back and determine if your current budget is working or is time for a little revamp. If you have not created a budget before, you will need to write down all of your monthly expenses and your monthly income. It may be beneficial to list your monthly costs in order of importance if you need to find places to trim some excess. Ensure to include everything, including the money you put away in monthly savings and money allocated for clothing and entertainment.1
Get Active
Staying active is vital to physical and mental health, but as you age, you may become less active than before. Even if you have physical limitations, you will still be able to find some way to stay physically active. Enjoy daily walks or go swimming when you have the chance. You may also want to consider physical hobbies and sports that interest you, such as golf or tennis. Sports are a great way to stay physically active, get social interaction, and stay mentally sharp.2
Review Your Insurance Policies
Your insurance needs will change over time, so giving them the once-over each year is an excellent practice to make sure you have the coverage you need for each stage of life you are at. Ensure you have enough coverage and the correct coverage so you don’t have a significant financial burden after a loss.1
Stimulate Your Mind
A healthy mind leads to a healthy body, and for many, as they age, mental stimulation is less common in their day-to-day life. Consider joining a group such as a book club or gaming club where you will be able to enjoy activities that stimulate your mind and also provide you with social interaction.2
Review Your Estate Plan
Estate planning is an important piece of retirement planning. Without a plan, you may find that your final wishes are not fulfilled or that an undue burden has been placed on your family, who may have to make medical and financial decisions without knowing what you would want. If you don’t have one in place, now is the time to have one created. If you currently have one, ensure it still aligns with your current situation and wishes.2
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
Footnotes
Scrooge and the Ghosts of Financial Planning
In Charles Dickens’s timeless classic, “A Christmas Carol,” Ebenezer Scrooge transforms from a miserly old man to a generous and empathetic soul. Along the way, he encounters the Ghosts of Christmas Past, Present, and Yet to Come, who reveal important lessons about life and, surprisingly, financial planning. Join us on a journey through Scrooge’s experiences to learn valuable financial lessons regarding the past, present, and future.
The Past: “Financial Regret and Missed Opportunities”
In the first part of Scrooge’s journey, the Ghost of Christmas Past shows him scenes from his earlier years. Scrooge witnesses moments of missed opportunities and poor financial decisions, like turning down his nephew’s invitation to celebrate Christmas or neglecting to help those in need. These glimpses from his past remind us of essential financial planning lessons.
Opportunity Cost
Scrooge’s obsession with money causes him to miss life’s most precious moments. The lesson is that financial planning should balance saving/investing for the future with enjoying the present.
Generosity Pays Off
Scrooge’s transformation began when he realized the joy of giving. Charitable giving may benefit others but also bring personal fulfillment.
The Present: “Finding Joy in Financial Balance”
In the second part of his journey, Scrooge is visited by the Ghost of Christmas Present, who shows him the joyous celebrations of others, including the Cratchit family. Despite their meager means, the Cratchits find happiness in their modest Christmas feast and love for one another. From the present, we may learn these lessons.
Family and Relationships Matter
Money should not be the sole focus of our lives. Building and nurturing relationships with loved ones can bring lasting happiness that no amount of wealth can replace.
Living Within Your Means
The Cratchits make the most of what they have. Living within your means and budgeting wisely is crucial for financial stability.
The Future: “Consequences of Neglected Financial Planning”
Finally, Scrooge is confronted by the foreboding Ghost of Christmas Yet to Come, who shows him a future where his death is met with indifference and scorn. This bleak vision is a stark reminder of the importance of long-term financial planning.
Estate Planning
Scrooge’s neglect of estate planning led to a chaotic distribution of his wealth. Proper estate planning ensures that your assets are passed on to your chosen beneficiaries as you wish.
Preparing for the Unexpected
The future is uncertain, but investing wisely, having insurance coverage, and saving for retirement may help you prepare for life’s twists and turns.
Just as Scrooge’s journey led to his character’s transformation, it also offers valuable financial planning lessons. From the past, we learn to seize opportunities and embrace generosity. In the present, we find the importance of balancing economic goals with life’s joys. And in the future, we are reminded of the need for careful planning and preparation.
Let’s take a page from Scrooge’s book this holiday season and consider the financial lessons that Dickens cleverly wove into his tale. May your financial journey be balanced, generous, and prepared, ensuring a brighter future for you and those you care about.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
This article was prepared by WriterAccess.
4 Business Lessons We Can Steal From the Grinch
It’s the most wonderful time of year. The holiday season is upon us, and no matter what festivity you participate in, there is a good chance that you might once again watch the timeless Dr. Seuss classic, The Grinch Who Stole Christmas. It is not just a fun Christmas story that has stolen our hearts since 1957; it is a story packed with life and business lessons that we can apply to our lives.
What makes this story so poignant is not just the antagonist (The Grinch) trying to ruin the hopes and joys of the protagonists (the Whos) but the transformation of good over evil, positivity over negativity, and the realization that it is the collection of small things you do in pursuit of a bigger goal. Here are five business lessons we can steal from the Grinch:
1. Creating goals and formulating a plan
The prickly and cranky Grinch lives in a cave on a mountain that looks down upon the town of Whoville, where the cheerful and fun-loving Whos live. Every Christmas, the Whos celebrate with songs, toys, and festivities. This Christmas Eve, the Grinch has finally had enough and decides that he is going to stop Christmas from coming. The Grinch has created a goal.
He then plans to disguise himself as Santa Claus, travel down the mountain to town, and steal the presents, food, and Christmas trees from each house in Whoville. The Grinch set a goal for himself, formulated a plan, and executed it. The same strategy applies to individuals in the business world. Setting goals and creating plans provides a direction and a map of how to work toward the end result.
2. Thinking while under pressure
While the Grinch is in one house, a young Who, Cindy Lou, interrupts him in the act cramming the Christmas tree up the chimney. The Grinch is forced to think on his feet and out of the box to escape the situation. Despite being caught red-handed, a moment that would leave some people frozen and tongue-tied, the wily Grinch is able to think on his feet, replying to the young Who that a bulb on the tree is broken.
He is taking the tree to fix the bulb, and then he will “return it right here.” In this case, the Grinch wasn’t being honest, but he could pursue his goal by thinking on his feet under pressure. In business, you have to be able to think on your feet and often under pressure. Just make sure to always be honest!
3. Attention to detail
The Grinch’s attention to detail in the story is quite remarkable. He takes literally everything representing Christmas for the Whos, going so far as to take a crumb off the floor. Attention to detail is a skill that helps with time management, accurate reporting, the management of workloads and day-to-day responsibilities, and other important aspects of business.
4. Don’t get tunnel vision
The Grinch had a big goal and a heart three times too small. He would steal Christmas this year so the Whos couldn’t enjoy the holiday. He formulated a plan and carried out a tremendous feat by sneaking into Whoville in the middle of the night and stealing all the presents, stockings, food, and toys from every house and took all the goodies on his sleigh to the top of Mount Crumpit to be thrown into the abyss. When the Whos woke up, they would find out that Christmas was gone.
The Grinch expected them to be as miserable as he was, but instead of crying over material things, they joined hands and sang joyful songs. In a remarkable transformation, the Grinch, hearing the Whos singing, realized that there was more to Christmas than what he stole, and his heart grew three times bigger.
Instead of being stuck in his tunnel vision of damage and destruction, he returned to Whoville and gave the Whos back their property. The Grinch changed from having a small cold heart to a large warm one. This significant moment of learning and growth shows us that we should never get too hung up on any one idea. Be willing to observe and evolve with the changing world around you.
The lessons we learn in business and out in the world that can be applied to business may influence our financial decision-making. We often think we are knowledgeable when it comes to our financial goals and what we need to do to align our actions to reach these goals. However, the business world is complex, regularly changing, and there are so many moving parts moving simultaneously. Getting the help from a financial professional can be very beneficial when it comes to making decisions that affect your business or financial strategy. Although he’s a mean one, even the Grinch would agree.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by LPL Marketing Solutions
5 Strategies for Managing Financial Stress During the Holidays
The holiday season is a time of joy and headaches, celebration, fatigue, and togetherness mixed with a few knock-down drag-out fights. On top of the emotional rollercoaster ride can come a big wallop of financial stress. From buying gifts to hosting parties and traveling to see loved ones, plus filling up a cabinet with booze, expenses can quickly add up, leaving many overwhelmed.
However, with careful planning and a few practical strategies, you may manage your finances, keep all your hair, and enjoy the holidays without breaking the bank or accumulating excessive debt. Here are five strategic to-do’s that are worth considering.
To-do Number One — Create a Realistic Budget
The emphasis is on being realistic instead of maxing out your credit cards. Start by listing all the holiday-related expenses you anticipate, including gifts, decorations, travel, and hosting expenses if you’re entertaining guests. Be sure to account for any regular monthly bills and ongoing commitments.
Once you estimate your anticipated expenses, set a spending limit for each category. You might allocate more funds to the most important aspects of the holidays, such as gifts for loved ones. However, a thoughtful and meaningful gift doesn’t always have to come with a hefty price tag. Cut back on less essential items like an out-of-this-world outdoor holiday display that makes the energy bill sky-high.
To-do Number Two — Start Saving Yesterday
Procrastination may lead to last-minute financial stress. Start saving for the holidays well in advance. Open a separate holiday savings account. Even small, regular contributions add up, perhaps making a significant difference when the holiday season arrives.
Consider automating your savings by setting up direct deposits or automatic transfers to your holiday fund. This way, you won’t be tempted to spend the money on other foolish things, and you’ll have a financial cushion when the holidays arrive.
To-do Number Three — Creative Gift-Giving
Gift-giving is a cherished holiday tradition but may also be a significant source of financial stress. To alleviate this pressure, consider more creative and budget-friendly gift-giving options.
Create thoughtful and personalized gifts such as handmade crafts, baked goods, or photo albums. Suggest to friends and family that you draw names and only buy a gift for one person rather than purchasing something for everyone. Establish a cap on how much you and your loved ones spend on gifts to keep expenses in check. Instead of physical gifts, consider gifting experiences like concert tickets, a cooking class, or a spa day.
To-do Number Four — Sales and Discounts are Your Friend
The holiday season is known for its numerous sales and discounts. Keep an eye out for Black Friday and Cyber Monday deals and pre-holiday sales. Make a list of the items you need to purchase and research prices to help get better deals.
Additionally, consider using cashback and rewards programs credit cards offer to save money on purchases. Pay off your credit card balance in full before interest charges apply to avoid accumulating interest charges.
To-do Number Five — Manage Expectations
The pressure of high holiday expectations may drive you to financial stress. To alleviate this, open a line of communication with your loved ones about your budget constraints. It is OK to admit you’re broke. Explain how you’d like to enjoy the holidays without so much focus on material things.
Encourage friends and family to participate in budget-friendly activities or opt for more meaningful, non-material gifts. You may manage to foster a spirit of understanding and a true holiday spirit of being grateful for what you have.
This article was prepared by WriterAccess.
Dos and Don’ts for Investing During the Holidays
In the world of investing, the “holiday effect,” as it is often referred to, is a phenomenon where stock prices see an increase right before a major holiday. There are many theories on why this may occur. It could be from trading volume being down due to investors taking a vacation or maybe because investors are becoming more averse to risk during the holiday season and off-loading their riskier investments.
No matter the cause of this uptick, it is essential to be prepared for it and follow simple dos and don’ts when investing during a holiday.1
Do Focus on Long-Term Wealth Building
Investing and risk come hand in hand, so while it is essential to only risk within your comfort level, you need to weather some short-term fluctuations that come with the holiday to stay on the path toward more considerable future gains. Riding out the “holiday effect” and sticking to your long-term wealth-building plan is the ideal course of action to keep you on track to work toward your future financial goals.1
Don’t Attempt to Time the Market
Since the holiday season is often considered a more volatile time in the stock market and a time when your mind is focused on other issues, you don’t want to attempt to anticipate how your stocks may perform during this time. Trying to do so may result in heavier losses as the seasonal effects are likely temporary. Avoid the impulse to suddenly change your portfolio unless it was already planned as part of your long-term investing goals.1
Don’t Base Your Risk on Daily Volatility
Your portfolio should be set up to weather certain periods of volatility. That being said, risk tolerance may change over time, and you may find your portfolio riskier than you are currently comfortable with. While there are easy ways to lower the risk of your portfolio, it is essential to consider how you define your risk. If you measure risk based on daily volatility, you may play it too safe to work toward your long-term financial goals.
The holiday swing may produce greater volatility than you are used to, which may cause you to make moves that may hurt your financial future when the better course of action may have been to stay put where you are.2
Do Plan a Reassessment After the Holidays
After the “holiday effect” has subsided and the effects of trading volume or risk aversion have lessened, it is a good idea to reassess your portfolio and make sure that it still involves the amount of risk you are comfortable with, the mix you want to have, and the potential return to help you with your long-term financial goals. It is the perfect New Year’s resolution and will help you stay on track with your goals.2
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
Footnotes:
1 How the stock market behaves during the holiday season, Fortune https://fortune.com/recommends/investing/how-the-stock-market-behaves-during-the-holiday-season/
2 8 Do’s and Don’ts During Market Volatility, US News Money, https://money.usnews.com/investing/buy-and-hold-strategy/slideshows/8-investing-dos-and-donts-during-market-volatility
Thanks and Giving: How You Make a Difference on Giving Tuesday
Giving Tuesday is a day to extend the goodwill that the holiday season may bring to help others. With so many in need, the holiday season is a reminder to help those less fortunate. Whether you want to donate your time or contribute funds to your favorite cause, there are many ways to celebrate the day. Here are some ways to mark the occasion.
Donate to a Food Bank or Shelter
Food banks are always in need of donations. Give your pantry a once over to see items you could donate, or go to the store and take advantage of any holiday sales to find things to donate. You may also consider items that local shelters need, such as clothing and personal care items. If you don’t have items to donate, consider offering a few hours of your time volunteering.
Give Blood
Hospitals and blood banks are always in need of donations. The winter months tend to make the need even more pronounced. Contact your local American Red Cross or area hospital to inquire how to get started or when the next blood drive is.
Pay it Forward
Giving Tuesday is the perfect chance to pay it forward to others. If you are in line at the drive-thru, you might pick up the cost of the next person’s order. You could also pay for someone’s meal when you are out to eat or donate money to pay off some school lunch debt. If you know of someone struggling, contact the utility company to pay one of their bills. These anonymous and random acts of kindness go a long way to brightening someone’s day and showing them that someone cares.
Build a Donation Station
Create a donation station to place in your front yard. Stock it with items you think that people in the neighborhood may need. Items may include winter clothing, canned goods, books, and even cleaning products. Let people know it is free to all, and those looking to donate anonymously may leave items as well.
Get into the spirit of giving this holiday season by celebrating Giving Tuesday with one or more of these ideas.
LPL Tracking # 1-05187459
Sources:
It’s ‘Giving Tuesday Now.’ Here’s how to make a difference — even if you don’t have any money, NBC News, https://www.nbcnews.com/better/lifestyle/it-s-giving-tuesday-now-here-s-how-make-difference-ncna1199681
How to Participate in GivingTuesday, Giving Tuesday, https://www.givingtuesday.org/united-states/ideas/
4 Thanksgiving Lessons for a Feast-Worthy Financial Plan
Thanksgiving is a holiday for spending time with loved ones, being grateful, and perhaps enjoying a bit of overindulgence. There are many financial lessons to be had in planning, preparing, and celebrating this annual feast.1 Here are four Thanksgiving lessons that might help your household’s financial plan year-round.
Planning is the Key to Preparation
You cannot expect to whip together a flawless Thanksgiving meal if you do not begin planning and preparing at least a few days in advance. Similarly, you cannot put together a strong budget and financial plan if you do not know where your money is going or if you do not plan for expenses before they occur. Track your expenses for a few months using a budgeting app or even the old-fashioned method of using a pen and paper to see what you are working with.
Balance and Moderation are Crucial
Just as overindulging in turkey, ham, or heavy side dishes may leave you feeling groggy and lethargic for the rest of the day, overindulging in spending might leave your budget in a mess.
One way to cut your monthly outflow with little impact is to go through your budget with a fine-toothed comb and eliminate any expenses not currently adding significant value to your life. Could you put a monthly subscription on pause? Do you really need an extended warranty on a high-quality item? By rigorously evaluating what your regular expenses contribute to your life, you may make cuts of nonessential items and then be able to indulge where it matters.
Plan for More Than You Need
When planning a Thanksgiving meal, preparing more food than you think you might need is probably a good idea. Not only may this help ensure you have enough for any extra guests who might show up, but this method also allows you to send leftovers home with guests. In the budget context, building in some extra wiggle room when estimating expenses may help prevent falling short at the end of the month.
Money is Important, But Not the Most Important
As the saying goes, “Money isn’t everything,”—and this is never truer than at Thanksgiving, when time spent with loved ones is paramount. Even if you have ample financial resources and a healthy budget, if you do not have those human connections, you may still struggle to identify a sense of purpose. While you are working on your financial plan, be sure to work on your relationships as well. Enjoy your Thanksgiving holiday with friends and family by using these tips and then take a hard look at your financial plans. It may help to work with a financial professional when reviewing your assets, expenses, retirement plans, and other financial goals to have a balanced approach to budgeting and expenditures. Always be grateful for what you have and take good care of yourself.
Important Disclosures
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
Footnotes
1 Put Thanksgiving Lessons to Work in Your Financial Plans https://tulsaworld.com/put-thanksgiving-lessons-to-work-in-your-financial-plans/article_9aa3dff1-6a5b-5dc5-ac2a-164a9c02a6e7.html
Charitable Giving: How Small Business Owners Can Make a Big Impact
Charitable giving is an excellent way for businesses to help others while taking advantage of additional tax breaks. Billions of dollars are given each year in the U.S. to a wide range of charities providing valuable community services. While large corporations may be responsible for a large portion of the donated funds, small businesses also make a large impact with their contributions.
3 Ways Small Businesses Can Donate to Charities
While cash donations are one of the most common ways to give to charities, small businesses may also provide support in other ways.
1. Volunteering
Instead of donating money, your business will be able to make an impact by donating their time to a local charity, such as a soup kitchen or homeless shelter.1
2. Host a Charity Drive
If you see a need in their local community, consider helping by starting a drive to collect needed items, such as a holiday toy drive or canned food drive.1
3. Take Advantage of Local Sponsorship Opportunities
Local youth organizations and groups are often looking for sponsorship. Consider sponsoring a sports team or local community event. You will also get a little advertising and community goodwill out of your involvement.1
Tips for Small Business Giving
While there are no set rules on how or how much you should give to charity, below are a few helpful tips to help your business get started.
Find a Cause That is Meaningful to Your Company or Employees
All types of charities are looking for support, which means it is easy to find one that resonates with your business culture and employees. This way, you will be more personally connected to your contribution, which will mean something to you and your employees.2
Research Charities You Are Interested In
Take some time to learn about the different charities you may wish to contribute to. Through some research, you will be able to find out how much of the contributions go into their programming, what kind of services they provide to the community, and the impact your donation may have. This will give you a clearer picture of how you are helping through your contribution.2
Build a Relationship With Your Chosen Charities
Even if you only contribute to your charity once a year, you want to stay connected and find out other ways you are able to assist throughout the year. This is a great way to stay connected with your community, network, and build relationships with other businesses.2
Get Your Employees Involved
Have your employees volunteer with the charity or offer contribution matching for employees who donate independently. This will help your employees connect with the charity and provide the charity with much-needed assistance throughout the year.2
It is important to remember that every dollar counts for charities, so even if your business only contributes a small amount, it will still be making a huge impact on the community.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax advice.
We suggest that you discuss your specific tax issues with a qualified tax advisor.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
Footnotes:
1 “Small Business Guide to Charitable Giving and Tax Deductions,” Business News Daily, https://www.businessnewsdaily.com/10470-small-business-guide-charity-donations.html
