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Employee benefits are an important part of any company's strategy to attract and retain top talent. As the workforce continues to evolve, employee benefit trends are also changing to meet the needs of employees. Here are five trends that will define employee benefits in the future.
1. Mental Health Support: Mental health is becoming an increasingly important issue for employees, as many people experiencing stress and burnout from the demands of work and personal life. In response, more companies are offering mental health support as part of their employee benefits package. This can include access to counseling and therapy services, as well as employee assistance programs (EAPs) that provide confidential support for a wide range of personal and work-related issues.
2. Wealth and Wellness Programs: With a growing emphasis on preventative care, companies are increasingly offering health and wellness programs as part of their employee benefits. These programs can include things like gym memberships, health screenings, and nutrition education. By promoting healthy habits, companies hope to reduce healthcare costs and improve employee productivity.
3. Flexible Work Arrangements: Remote work has remained popular in recent years, and this trend will likely continue. Companies are recognizing the benefits of flexible and hybrid work arrangements, including increased employee satisfaction and productivity, as well as reduced absenteeism.
4. Employee Development and Training: With the fast-paced nature of the modern workforce, companies are recognizing the importance of investing in employee development and training. Many companies offer professional development opportunities as part of their employee benefits package, such as tuition reimbursement and training programs. This allows employees to improve their skills and advance their careers, which in turn benefits the company.
5. Voluntary Benefits: Voluntary benefits are employee benefits that employees can opt into at their own expense. These benefits can include things like life insurance, long-term disability coverage, and accident insurance. As companies look to provide more comprehensive benefits packages, voluntary benefits will become increasingly popular in the future. This allows employees to tailor their benefits package to their own specific needs and preferences, rather than being limited to a one-size-fits-all package.
Employee benefits will continue to play an important role in attracting and retaining top talent in 2026. Companies wanting to remain competitive will need to continue to offer a variety of benefits, including mental health support, health and wellness programs, some flexible work arrangements, employee development, and voluntary benefits.
These benefits help improve employee productivity, reduce healthcare costs, and promote a positive work-life balance. As the workforce continues to evolve, it will be important for companies to stay current on the latest employee benefit trends to attract and retain top talent.
In reviewing stocks from May through October, it’s been a historically strong season, but not for stock mutual funds or ETFs. What about bonds, equities, and alternatives? How does AI growth compare to the “dot com” era? Finally, the continued importance of diversification.
For investors seeking to support charitable causes while maximizing their tax benefits, donating stock instead of cash can provide significant advantages. By contributing appreciated securities to a qualified charity, investors can potentially deduct the full fair market value of the donated stock on their federal income tax return.
Here are a few reasons why donating stock can deliver more "tax bang for the buck" compared to cash donations and how you can leverage this strategy to optimize your charitable giving.
One of the key benefits of donating appreciated stock to charity is the ability to write off the full fair market value of the donated securities on your federal income tax return. This differs from cash donations, where the deduction is limited to the amount contributed.
When investors sell appreciated securities, such as stocks, mutual funds, or other capital assets, they are typically subject to capital gains tax on the profit earned. However, by donating these appreciated assets directly to a qualified charity, investors can potentially avoid paying capital gains tax altogether.
By donating appreciated securities instead of cash, you can unlock two significant tax benefits:
Deducting the Full Fair Market Value: When donating appreciated stock, the donor is eligible to deduct the full fair market value of the securities on their federal income tax return. This means that the deduction is based on the current value of the stock, not just the initial purchase price. As a result, you can potentially claim a larger tax deduction, thereby maximizing their tax savings.
Eliminating Capital Gains Tax: By donating appreciated securities directly to a qualified charity, you can bypass the capital gains tax you would have incurred if you had sold the stock first. This can result in substantial tax savings, especially for individuals with significant capital gains.
To make the most of donating stock to charity and maximize tax benefits, investors may consider the following strategies:
Donating stock to charity instead of cash offers investors a powerful tax strategy for optimizing their charitable giving. With careful planning and professional guidance, you can effectively navigate the tax landscape, reduce your tax liabilities, and support the philanthropic initiatives that are most meaningful to you.
Giving Tuesday, celebrated annually on the first Tuesday after Thanksgiving, is a global movement that inspires individuals, families, and organizations to contribute to causes they care about. This year, on December 2, 2025, people around the world will unite to give back – whether through donations, volunteer work, or acts of kindness.
As this special day approaches, it’s an ideal time to reflect on how charitable giving fits into your financial plan. Giving should be more than an afterthought; it can be a deliberate and fulfilling aspect of your financial goals.
1. It Aligns Values with Finances
Charitable giving allows people to support causes that resonate with their personal values. By integrating philanthropy into financial planning, it ensures money is working towards creating change in the places that matter most.
2. Tax Benefits
Contributions to qualified charities can provide significant tax advantages. Depending on the financial situation, donations may be deductible from taxable income, reducing the overall tax liability. Strategic planning helps to maximize these benefits while staying within budget.
3. Teaches Generosity and Financial Responsibility
When giving is included in the financial strategy, it sets an example for family members, particularly children. It teaches them the importance of generosity while reinforcing the principles of budgeting and financial discipline.
4. Supports Long-Term Goals
Charitable giving doesn’t have to conflict with other financial priorities, such as saving for retirement or education. When done thoughtfully, it complements the overall financial objectives, ensuring long-term success and impact.
1. Set a Budget for Giving
Treat donations like any other financial commitment. Determine a percentage of income or set a fixed amount to allocate to charity each year. This ensures giving remains intentional and affordable.
2. Choose Causes Wisely
Focus on charities that align with personal values and that have a clear impact. Research organizations to ensure they are reputable and use donations effectively. Websites like Charity Navigator and Guidestar can help with evaluating nonprofits.
3. Use Strategic Timing
While Giving Tuesday is a wonderful opportunity to make donations, consider spreading contributions throughout the year. This enables a bigger impact when there are matching donation campaigns or seasonal needs, such as winter shelters or back-to-school programs.
4. Leverage Employer Matching Programs
Many employers match charitable contributions made by their employees. Check with the HR department to see what programs are available and the requirements for participating.
5. Consider Donor-Advised Funds (DAFs)
DAFs allow lump sum donations with an immediate tax deduction, and the ability to distribute the funds anonymously to different charities. This option is good for reducing taxable income in the current year while streamlining giving over time.
6. Monitor and Adjust
Regularly review the financial plan to ensure giving goals are aligned with the current financial situation. Adjust as needed, based on changes in income, expenses, and priorities.
Giving Tuesday is more than a single day of generosity – it’s a reminder of the power of collective giving. By incorporating philanthropy into your financial plan, you create a sustainable way to support meaningful causes while maintaining financial stability. This December 2nd, take a moment to give thoughtfully, making sure that your generosity is both impactful and aligned with your long-term financial goals. Whether you contribute funds, time, or resources, you can make a difference.
For many of us, buying locally matters. We’ve all heard the term and seen the signs: Shop Locally. Eat Locally. But let’s extend that thought for a minute: do you consider giving to your local charities? The fact is, we are bombarded with requests from worthwhile charitable causes. Many of these are well-known national or international organizations with sophisticated fund-raising efforts. Amid their appeals, requests from local charities may be easy to overlook. Yet many small organizations do a great deal of good in their hometowns.
Before deciding whether giving locally or nationally is a better option, here are a few things to consider:
Remember that giving is an individual decision. Choose the level and type of giving that fits best for you, instead of trying to match what others do, or by giving what someone else thinks you should. Finally, keep a balanced perspective. There are many worthwhile organizations, and you can't possibly give to them all. Don't waste energy feeling guilty about the ones you skip. Instead, enjoy making a difference where you can, and let it add joy and satisfaction to your life.
The fragrance of pumpkin spice is in the air, leaves are transforming into a brilliant display of reds and golds, and festive preparations are underway. Fall is not just a season of change in nature; it's an opportunity for financial reflection. Amidst the joyous celebrations and heartwarming family gatherings, it may seem out of place to think about taxes.
However, now is the perfect time to lay the groundwork for tax planning for the upcoming year.
Financial Clarity: By this time of the year, you have a better understanding of your earnings, major expenses, and any financial shifts. This clarity allows you to make accurate estimations and necessary adjustments for tax benefits.
Maximizing Deductions: Fall provides the opportunity to review potential deductions and make charitable donations, invest in tax-beneficial accounts, or consider other strategic financial decisions to maximize deductions.
Anticipating Changes: Legislative bodies often discuss potential tax reforms or amendments towards the end of the year. Being aware and proactive now could save you from potential pitfalls later.
Avoiding the Last-Minute Rush: Getting a head start on tax planning allows for a more relaxed approach, avoiding the stress and mistakes that come with last-minute decisions.
Review Your Income: Understand how much you've earned and anticipate any further income in the remaining months. This will help you ascertain your tax bracket and plan accordingly.
Assess Major Financial Changes: Did you buy a house? Start a new business? Have a child? All of these life events can have significant tax implications.
Check Retirement Contributions: Ensure you're maximizing contributions to retirement accounts like 401(k)s and IRAs, which can offer tax advantages.
Explore Charitable Giving: With the holidays around the corner, consider making charitable donations. Not only do you give back, but you also can benefit from tax deductions.
Stay Updated on Tax Laws: Familiarize yourself with any changes in tax laws or codes that might affect you. Knowledge is power when it comes to effective tax planning.
Consult a Professional: Even if you're savvy with finances, consulting with a tax professional can offer insights you might have missed. Their expertise can provide you with strategies tailored to your specific situation.
Fall, with its beauty and festive spirit, is a reminder that the year is drawing to a close. The season inspires reflection and gratitude, making it an ideal time to consider our financial well-being. So, as you cozy up with a cup of cider and watch the leaves fall, remember that a little planning now can lead to a more prosperous and stress-free new year. Embrace the spirit of the season and get a jumpstart on your tax planning.
Capital gains taxes might sound like a complex financial term reserved for Wall Street tycoons, but in reality, they touch most investors and many homeowners. Whether you're selling stocks, a piece of real estate, or that vintage baseball card collection, understanding capital gains taxes can help you make smarter decisions and keep more money in your pocket.
Understanding Capital Gains
At its core, a capital gain is the profit made from the sale of an investment or real estate. For instance, if someone buys an asset for $1,000 and later sells it for $1,500, there is a capital gain of $500.
These gains are categorized in two ways:
The Importance of Planning
Why does this distinction between short-term and long-term matter? Because the tax implications can be substantial. For many taxpayers, long-term capital gains are taxed at a more favorable rate than short-term gains. Thus, holding onto an asset for just a bit longer (say, 13 months instead of 11) could lead to a significantly lower tax bill.
It's important to look at the net profit (after taxes) when considering a sale. This underscores the critical nature of tax planning as an integral part of investment strategy.
Exceptions and Exclusions
There are specific cases where the capital gains tax has exemptions or special rules. A notable example is the sale of a primary residence. If the seller meets certain requirements, then some of the gains might be excluded from taxes. However, this doesn't apply to rental or second properties.
Strategies to Minimize Capital Gains Taxes
Wait it Out: As mentioned previously, holding onto investments for more than a year moves them into the long-term category, often resulting in lower taxes.
Tax-Loss Harvesting: This involves selling securities at a loss to offset capital gains in other areas. It can be a strategic move, especially in a down market.
Gift Assets: Instead of selling assets, consider gifting them. While there are limits, this can be a way to transfer value without triggering capital gains taxes.
Maximize Tax-Advantaged Accounts: Utilize accounts like 401(k)s or IRAs, where investments grow tax-free or tax-deferred.
Stay Current: Tax laws can change. Check with your financial and tax professionals to ensure you're up to date with the latest rules and rates.
Be Proactive
While taxes are inevitable, the weight of their impact may be controllable. By understanding the nuances of capital gains taxes and making informed decisions, you can optimize your financial outcomes.
Remember, it's not just about what you make, but also what you keep. A proactive approach today can lead to fruitful savings tomorrow.
One of the most overlooked but critical areas of retirement planning is tax efficiency. After all, it’s not just what you earn – it’s what you keep. For many retirees, smart tax planning can extend the life of a portfolio, reduce Medicare costs, and help avoid paying unnecessary taxes on Social Security benefits.
New Tax Landscape in 2025
Recent updates to the tax code have increased the standard deduction for individuals and married couples, aged 65 and older. These increases simplify filing and reduce taxable income for many retirees – but they also open the door to more nuanced tax planning strategies, especially when drawing income from a mix of taxable, tax-deferred, and tax-free accounts.
Top Tax Reduction Strategies for Retirees
1. Roth Conversions. Converting assets from a traditional IRA to a Roth IRA during low-income years can help reduce Required Minimum Distributions (RMDs) in future years and create a pool of tax-free retirement income. Partial conversions – done strategically over multiple years – can minimize the risk of bumping into higher tax brackets or triggering Medicare IRMAA surcharges.
2. Long-Term Capital Gains Harvesting. The 0% federal long-term capital gains tax bracket for taxable income increased for both individuals as well as married couples for 2025. This presents a unique opportunity for retirees to sell appreciated assets and rebalance portfolios without triggering capital gains taxes – provided they remain within the income thresholds. Check with a financial professional to see if this is would be beneficial.
3. Qualified Charitable Distributions (QCDs). For those who are aged 70½ or older, with significant resources, there’s an opportunity to make large donations, annually, from an IRA directly to a qualified charity. This counts towards the RMD and excludes the donated amount from taxable income. It’s a smart way to support important causes while lowering the tax bill. For additional details check with a trusted advisor.
4. Asset Location Optimization. Where investments are held matters. Tax-inefficient holdings like bonds or REITs may be better suited for tax-deferred accounts, while long-term equity investments may belong in taxable accounts where favorable capital gains rates apply. This allocation can reduce annual tax drag and boost after-tax returns over time.
5. Withdrawal Sequencing. The order in which to draw down assets can dramatically affect the tax burden over a lifetime. A common guideline is to first withdraw from taxable accounts, then tax-deferred accounts (like IRAs and 401(k)s), and finally Roth accounts. This approach defers taxable income and preserves tax-free growth longer.
Tax Planning is Year-Round, Not Just in April
Effective tax planning doesn’t begin in March and end in April – it’s a year-round discipline. Retirees should monitor not only their income levels, but also market conditions and policy changes that can affect tax thresholds. Year-end rebalancing, mid-year Roth conversions, and early-in-the-year QCD planning can all work together to ensure a retiree keeps more of their hard-earned savings.
Work with a financial advisor and tax professional to customize your plan and make proactive moves rather than reactive ones. With inflation threatening, healthcare costs rising, and income sources increasingly diverse, efficient tax strategy is one of the most powerful tools in your retirement toolkit.
As retirement planning becomes increasingly complex, one vehicle is gaining attention for its potent blend of savings and tax advantages: the Health Savings Account (HSA), often dubbed the "medical IRA." This unique account stands out in the financial landscape for its triple-tax benefits, making it an essential tool for individuals aiming to secure their medical and financial well-being in retirement.
The HSA is more than just a savings account. It's a strategic investment platform that, under certain conditions, allows for tax-free contributions, growth, and withdrawals. To be eligible, one must be enrolled in a high-deductible health plan (HDHP) among other criteria. The HSA can cover a wide range of qualified medical expenses prior to age 65, including doctor visits, dental and vision care, and prescriptions, making it a versatile asset in managing healthcare costs.
Tax-Deductible Contributions: Contributions to an HSA are made with pre-tax dollars, effectively reducing your taxable income. This immediate tax break can yield significant savings, lowering your overall tax bill.
Tax-Free Growth: The funds within an HSA grow tax-free. This means any interest, dividends, or capital gains accumulate without being subject to taxes, allowing the account to grow more rapidly.
Tax-Free Withdrawals for Medical Expenses: Withdrawals from an HSA for qualified medical expenses are tax-free, even in retirement. This benefit is particularly valuable as healthcare costs often become a more significant part of household spending in later years.
Maximize Contributions: The limit is several thousand dollars for an individual (and nearly double for families), and it usually increases each calendar year. There is also a catch-up contribution for those aged 55 and older. Maximizing contributions can enhance tax savings and provide a larger fund for future medical expenses.
Invest Wisely: Many HSAs offer investment options similar to those found in retirement accounts. By investing the HSA funds, it can potentially increase the growth rate, turning it into a powerful tool for retirement savings.
Plan for the Long Term: Instead of using the HSA for current medical expenses, consider paying out-of-pocket, if able, allowing the HSA to grow over time. This strategy can build a substantial tax-free fund for healthcare costs in retirement.
Understand the Rules: After age 65, funds can be withdrawn from the HSA for non-medical expenses without penalty, but these withdrawals will be taxed as income. However, medical expenses remain tax-free, underscoring the HSA's role as an important retirement healthcare fund.
International stocks continue to lead in 2025, due to a weaker U.S. dollar. Domestically, the Mag-7 have pulled just slightly ahead. And what will interest rate cuts mean for short-term bonds? Rate cuts may impact short and long-term bonds differently, take a look!