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Giving Your Time, Talent and Treasure Series: Giving Your Treasures

Baby Boomers are starting to retire and will soon account for the largest retired generation to date. For those whose nest egg and assets are undoubtedly more than they will need, the benefits of philanthropy become an excellent way to ensure your hard-earned estate is put to good work. While retirement planning ideally begins many decades prior to retirement, giving of your treasures often becomes a bit more strategic once you retire.

The Contributions From Retirees Is Astounding


Studies show that between 2015 and 2035, Baby Boomers are poised to give an impressive $8 trillion dollars to the causes they believe in. Studies also show that Baby Boomers will be very selective about where their money goes. As part of this philanthropic generation, you are likely happy to give. However, during your lifetime you have seen examples of non-profits who fail their donors and the communities they serve. What this means is that along with monetary donations, you want more. You want to know precisely where your contribution is going, who will benefit from it and how long it will take for an impact to be realized. Odds are, you will also want to give of both your time and your resources. This is exciting, because retirees who find mutually-aligned philanthropic partners are poised to donate more time than any other demographic, as well more money.

A Strategic Approach to Estate Taxes and Philanthropic Donations


Aside from social responsibility retirees would rather see their hard-earned money invested in a worthy cause, instead of being heavily taxed. When a sound estate strategy is put in place, you may not only reduce the amount of money that goes towards taxes, but may also leave more to your loved ones.

You may benefits from working with a financial advisor to determine the best ways to achieve your goals. Odds are you have a variety of monies and assets, including your IRA, 401(k), 403(b), mutual funds, savings accounts, property and heirlooms. Some of these are tax exempt, while others can be taxed at time of withdrawal or inheritance. Some portions of an inheritance can be taxed by as much as 40 percent to the family member you leave them to. By creating an estate strategy, you may be able to drastically reduce these taxes. You may even be able to maximize tax-free gifting to family while you are still here to see them enjoy it.

A Few Examples of Maximizing Your Treasures


There are many ways to maximize your estate. While each estate and retirement plan varies, here are a few examples:

  • Instead of distributing all assets to family or charity, designate some to be liquidated with the intention of paying estate taxes.

  • Strategically leave tax-free income to family, such as a Roth IRA.

  • Donate assets or portions of assets that are subject to income tax to qualified tax-exempt charities, such as a traditional IRA.

Giving of your treasures can make a highly meaningful impact. Your contributions will create an endless ripple of giving.  

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