How to align your generosity with your financial planning and why it matters

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.

Why Incorporate Charity into a Financial Plan?

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.

How to Make Giving Part of the Financial Plan

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.

Ways to Give on Giving Tuesday

• Monetary Donations. Donate directly to a nonprofit or through crowdfunding platforms.
• In-Kind Donations. Contribute clothing, blankets, hygiene kits, or other items to organizations in need.
• Volunteer Time. If a financial contribution isn’t possible, offer time and skills to a local charity.
• Advocate and Share. Use social media to amplify the message of a favorite nonprofit and encourage others to give.

Take a Moment

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 2^nd, 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.

Maybe your charitable donations should stay in your zip code?

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:

1. Administrative Costs. No matter whether an organization is local or international, always check to see how much of the money it raises goes to administrative costs and how much actually reaches the people or causes the charity serves. Most charities have websites where this information is readily available.
   
   
2. What kind of giving matters most? For those who want to support the arts, chances are that a local organization, like a community theatre or concert association will make great use of donated funds. If the priority is support after natural disasters, an international organization is probably the most effective place for donated money.
   
   
3. What about giving actual items rather than money? Local charities are usually better choices for receiving goods. Many places, for example, use “angel trees” which are programs that provide gifts for needy children or the elderly. If helping the hungry is at the top of the list, providing canned goods, rather than cash, at the local food bank or homeless shelter is a good option.
   
   
4. Local designations. Find out whether the organization allows for gifts to be locally designated. Many national organizations like the Red Cross, Salvation Army or food banks are happy to receive gifts that are designated for a local chapter.
   
   
5. Where does it go? Just as local government is closer to the people it serves, local charities may be more in touch with specific community needs. By giving locally, it’s easier to talk with the people in charge and find out exactly where the gift of money goes.
   
   
6. Other ways to give. Giving locally also allows financial giving to be combined with hands-on service that may be more satisfying than just giving money. Several options are serving meals at a shelter, packing gift boxes, volunteering at a food bank, or distributing gifts. 
   
   
7. Research them. Just because a charity is local, however, doesn’t automatically mean it uses its money wisely or efficiently. Always check. Sometimes, a small organization may be trying to duplicate what an older or larger organization can do more efficiently. Sometimes, local organizations are run by people who are well-meaning but don't necessarily have the skills or contacts to make the best use of donations. Do the research!

Final Thoughts

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.

Tips to embrace the spirt of fall to get a jumpstart on your tax planning

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.

Why Think About Taxes Now?

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.

The Fall Checklist for Tax Planning

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.

Planning Matters

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.

It’s not just about how much money you make, but how much you keep

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: 

• Short-term Capital Gains: Profits from assets held for a year or less are considered short-term. These are generally taxed at the ordinary income tax rate. 

• Long-term Capital Gains: Profits from assets held for more than a year are labeled as long-term. They often benefit from a lower tax rate, which can vary based on the individual’s taxable income and filing status. 

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.

Proactive (not reactive) planning will help you keep more of what is yours

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. 

The HSA offers triple-tax benefits and is a unique retirement tool

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.

Understanding the HSA

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.

The Triple-Tax Advantage

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.

Making the Most of Your HSA

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.

It's Still International Stocks in the Lead

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!

If you are an inventor, author, artist, or owner of a closely held business, you may have already taken steps to help protect your intellectual property rights. Certain types of intellectual property, such as business ideas, visual art, published or unpublished literary and musical works, inventions, computer programs, and designs of clothing and architecture, may be protected by law through copyrights, patents, and trademarks. When planning your estate, carefully consider these valuable assets to help ensure that they are transferred to your heirs according to your wishes upon your death.

Unique Concerns

Intellectual property is a unique asset, as it is an expression of an individual’s knowledge and ideas. While not simply a thought itself, intellectual property is an intangible asset that is the direct result of work or trade. Just as no two individuals think alike, each estate that owns intellectual property must be handled differently. This area of estate planning is continually evolving, particularly as intellectual capital continues to gain significance throughout commerce in general.

Initially, it is important to determine if the intellectual property can be passed down to heirs. Certain types of intellectual property may have inherent renewal or termination rights through copyrights, patents, and trademarks. This can create questions as to when intellectual property rights become transferrable. To address these concerns, some intellectual property owners choose a second executor to handle intellectual property issues in their estates. For example, an author may appoint a family member to oversee the general administration of his or her estate, as well as a second person or entity with experience in intellectual property to handle posthumous publications.

The valuation of intellectual property also poses a challenge to estate planning. The Internal Revenue Service (IRS) offers guidelines for some, but not all, types of intellectual property. For instance, the valuation of literary work is based on the copyright’s future earnings potential reduced to its present value. Theoretically, this valuation methodology may also apply to other types of intellectual property. However, the question may remain as to how far into the future the potential for earnings exists. It may be possible to hire a professional appraiser to help determine the current value of intellectual property and how future trends may affect this value. But, it is also important to choose someone with expertise in the area of intellectual property.

Estate Taxation

Estate taxation affects individuals with substantial assets, regardless of the type of property that is included in his or her estate. However, intellectual property sometimes creates additional concerns. Just as an executor might be forced to sell a family vacation home solely to pay for estate taxes, a best-selling author may fear that, after his or her death, the future publication rights to an unpublished work will need to be sold for the same reason. If a large portion of an individual’s assets is “intellectual” in nature, this can be a major concern.

Proper estate planning is pivotal in helping to make sure the decedent’s wishes can be implemented. A life insurance policy purchased and owned by an irrevocable life insurance trust (ILIT), if correctly structured and administered, can provide cash at death to help satisfy estate tax obligations. This use of life insurance can provide flexibility in an estate with only a small amount of liquid assets.

Also, if the intellectual property is of significant size, gifting some or all of the property to a recognized charitable organization at death can help to lower estate taxes. The estate of the decedent would receive a charitable contribution deduction against estate taxes based on the fair market value of the gift at death.

 One Step at a Time

Estate planning for intangible assets, such as intellectual property, involves an array of complicated considerations. A basic understanding of the issues involved underscores the need for appropriate planning to help ensure the ultimate distribution of your assets according to your wishes. If you own intellectual property, be sure to consult with your estate planning team, including financial, legal, and tax professionals.

A vital solution for your loved ones without jeopardizing their public benefits

A Special Needs Trust (“SNT”) is a crucial financial tool designed to benefit individuals who rely on needs-based public assistance. These trusts enable beneficiaries to maintain their eligibility for public benefits while receiving additional financial support from an inheritance.

For clients with dependents or loved ones who receive public benefits, an SNT can offer peace of mind and financial security.

Let’s explore the key advantages and functions of Special Needs Trusts.

Benefits of a Special Needs Trust

1. Preserving Public Benefits

One of the primary advantages of an SNT is its ability to preserve the beneficiary's eligibility for needs-based public benefits such as Supplemental Security Income (SSI) and Medicaid. Receiving an inheritance directly can disqualify individuals from these crucial benefits due to asset limits.

However, by placing the inheritance in an SNT, the beneficiary can continue to receive public assistance. Importantly, the funds in the SNT are used to supplement, not replace, the benefits provided by public programs.

2. Controlled Access to Inherited Funds

An SNT does not provide the beneficiary with direct access to the inheritance. Instead, the funds are managed by a trustee, who oversees the trust and disburses funds according to the trust's terms. This arrangement ensures that the client maintains control over the distribution and use of the funds, both during their lifetime and after their death. It also protects the assets from being misused or squandered by the beneficiary.

3. Appointment of a Trusted Trustee

Clients can appoint a trusted individual or a professional fiduciary to manage the SNT. The trustee is responsible for ensuring that the funds are used for the beneficiary's benefit and according to the trust's terms. This can include paying for medical expenses, education, personal care, and other needs not covered by public benefits. By appointing a reliable trustee, clients can ensure that their loved ones are well cared for and that the funds are managed prudently.

4. Protection of Trust Assets

Upon the beneficiary's death, the assets remaining in the SNT are not subject to reimbursement claims from state or federal agencies. Since the assets in the SNT never legally belonged to the beneficiary, they are protected from being used to repay benefits received. Instead, these assets can be directed to other beneficiaries designated by the client. This feature allows clients to ensure that their estate is distributed according to their personal wishes, even after the death of the SNT beneficiary.

Estate Planning Matters

In summary, Special Needs Trusts offer a vital solution for clients who want to provide for loved ones without jeopardizing their public benefits, as well as ensuring controlled access to inherited funds, and protecting the trust assets from reimbursement claims.

For investors and clients seeking to safeguard their family's financial future, an SNT can be an essential component of their estate planning strategy.

Final Thoughts

As you consider the financial planning needs of your family, it's crucial to understand the benefits and intricacies of Special Needs Trusts. Consulting with a financial advisor or an estate planning attorney can provide personalized guidance and help you establish an SNT that meets your specific requirements and goals.

With the right planning, you can ensure that your loved ones receive the support they need while preserving access to essential public benefits.

Why Estate Planning Matters

There is a common misconception that estate planning is something that only the affluent need to do before they die. However, estate planning is important for everyone, regardless of income level or net worth. Planning for the disposition of assets upon your death can provide benefits to all the parties involved.

Estate planning provides clarity and peace of mind. By naming heirs in advance and clearly outlining how assets should be distributed, individuals can prevent unnecessary stress, expenses, and even legal battles for their families. Without a plan, these decisions may be left up to the courts.

Beyond designating heirs, the process can also involve strategies to safeguard assets. For example, establishing a trust ensures that wealth passes to the right people, while potentially reducing taxes. Estate planning can also prepare for life events—such as incapacity—through tools like a durable power of attorney, which authorizes someone to handle legal and financial decisions, or a health care proxy, which designates someone to make medical decisions. A living will can further express preferences about life-sustaining medical treatment.

Put It in Writing

At the foundation of any estate plan is a will or trust. Creating one with the guidance of a qualified attorney helps avoid costly oversights. An experienced professional will ask questions that might otherwise go unconsidered—such as whether minor children could manage an inheritance, or how a divorce or death in the family might affect asset distribution.

Name Names

Choosing the right people is central to effective estate planning. First is the executor, who will be responsible for carrying out the plan. Then come beneficiaries, who should be carefully designated on insurance policies and retirement accounts such as 401(k)s, IRAs, or pensions. It’s important to note that these beneficiary designations override instructions in a will or trust, meaning that assets pass directly to the named individuals.

What About Estate Taxes?

While assets transferred to a spouse are not subject to estate taxes, transfers to children or other beneficiaries may, depending on the size of the estate. Federal exclusions apply, but some states impose their own estate taxes as well.

To manage these costs, individuals may use tools such as life insurance policies, trusts, or gifting programs designed to reduce the taxable value of the estate. Since the rules can be complex, professional tax and legal guidance is essential.

No matter the size of your estate, take steps now to ensure your wishes are honored and your loved ones are protected. Estate planning isn’t about how much you have—it’s about leaving behind clarity, care, and peace of mind.