True wealth is
found no place else but in the joy of giving. Look past your fears and start
positioning for the opportunities that lie around the corner. Now is the time
to take the perspective of sufficiency
instead of deficiency.
As a society, we can
shelter in place – technology at our fingertips,
and food delivered at our doors. As we don a daily attitude of gratitude, we
can free ourselves to share with moxie and momentum.
What we do now to
utilize our character strengths as well as appropriate our financial assets
will usher in happier, fulfilled, and changed families, communities, and world.
YOU have the opportunity to co-create what is next.
Yes, our health
care providers are on the front line of this challenging time, but many others are
also stepping up to serve. Those with financial resources to share are being
called on in ways that may take them out of their comfort zones.
Everyone has a
vital part to play in unfolding solutions, and non-profit organizations are critical,
strategic partners. They need your continued, generous support.
ReFUND and QCD – What Are They?
As you look at how
to best share your financial resources right now, there continue to be
creative, strategic ways to do so. If you have not filed your taxes yet (you
now have an extension until July
15th, 2020) consider ReFUND.
The SECURE act
changed the timeline to start taking your required minimum distributions (RMD).
For anyone turning 70 ½ in 2020, you do not need to take your RMD until age 72.
However, if you turned 70 ½ last year or before you need to continue to take it
The amount you need
to withdraw is based on the account value of your IRA on 12/31/2019. If you
have several IRAs, look at their overall total amount. With current market
volatility, you could take your entire RMD from the most conservatively
As part of your
giving plan, you could utilize the Qualified Charitable Distribution (QCD). Contact
your advisor or custodian and request that they send your RMD to a qualified
501C3 organization directly.
This keeps the
income off your 1040. Since many people are using the standard deduction now
rather than itemizing, this will keep your taxable income lower.
Write a check or
transfer funds from your Donor Advised Fund. It is simple – just do it. Many
times we hold back because of accountability, or desire to make sure it is
going where intended.
This is unchartered
territory, and we are banding together to help – all hands on deck, dollars on
the table. Yes, be wise about where you give and how you do it – but do it.
This pandemic has
created the great equalizer. It impacts every man, woman, and child, regardless
of color, creed, political affiliation, or economic standing. We have a moral
imperative to co-create a new and better world.
to causes and organizations as well as your neighbors is no longer a luxury of
abundance but an expression of sufficiency. Talk with your financial life
advisor to discern the best, tax efficient, and productive ways to give.
As a final note,
please make sure any organization you approach is trustworthy. Many scams
circulate in the world today, trying to take advantage of those who want to
help the most needy in our community. Be vigilant and take time to thoroughly
research an organization before opening your wallet.
How do you
manage donations in hard times? Do you have a mindset of sufficiency or deficiency?
Which organizations do you support by volunteering, and which ones do you
support financially? Please share with our community!