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Through charitable giving, you can support causes or organizations you believe in and lock in tax benefits simultaneously. Whether you're new to charitable giving or a veteran, there are several strategies you should keep in mind. The giving methods you choose, what you give, and when you give can help you maximize your impact and minimize your tax burden. Here are four charitable giving strategies to consider before making your gift. Non-cash charitable contributions Contrary to popular belief, cash is not the only way to give back. Instead of cash, you might want to consider taking advantage of donating appreciated stock or assets that you've held for more than a year. Through this strategy, you'll be able to save on capital gains taxes. Another option is to name a charity as your life insurance policy beneficiary. Note that you can change beneficiaries if you are the owner of the policy. In addition, you can donate goods that can help an organization. If you donate goods, you can ask for a tax deduction form, as long as the goods are in good or better condition. Qualified Charitable Distributions (QCDs) If you're 70 1/2 or older, you can use a QCD to donate directly from your IRA to the charity of your choice. While the gift amount won't qualify for a charitable deduction, it won't be considered taxable income either. This strategy allows you to deduct the amount transferred to the charity from your taxable income. In addition to reducing your taxable income, a QCD might be helpful if you won't reach the level of itemized deductions to exceed the standard deduction amount but would still like to make charitable gifts. Donor-Advised Funds (DAFs) You can donate cash or other assets to a charitable investment account and receive a tax deduction immediately with a DAF. Since a DAF will grow tax-free, you may choose to distribute funds over time to organizations and causes that are important to you. If you time your contributions to coincide with higher-income years, you'll enjoy a more significant tax deduction. Bunch your donations Bunching or concentrating your donations in one year instead of skipping one or several years is a great way to make the most out of potential tax deductions. This option may make the most sense for your situation if your total itemized deductions for a single year fall below the standard deduction. By making charitable contributions for several years at one time, the total of your itemized deductions can exceed the standard deduction and offer some tax benefits. Consult your financial professional Your team at Planned Financial Services can work with you to help you design a charitable giving strategy. Together we can review your financial situation and help you work towards meeting your desired goals. Contact us today to get started at 440.740.0130. Important Disclosures Investment advice offered through Planned Financial Services, a Registered Investment Advisor. Information provided is general and educational in nature and should not be construed as legal or tax advice. Planned Financial Services and its licensed representatives do not provide legal or tax advice. Content provided relates to taxation at the federal level only, and availability of certain federal income tax deductions may depend on whether you itemize deductions. Rules and regulations regarding tax deductions for charitable giving vary at the state level, and laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of the information provided. Charitable contributions of capital gain property held for more than one year are usually deductible at fair market value. Deductions for capital gain property held for one year or less are usually limited to cost basis. Consult an attorney or tax advisor regarding your specific legal or tax situation. All information is believed to be from reliable sources; however Planned Financial Services makes no representation as to its completeness or accuracy. This article was prepared by Fresh Finance. Tracking # 1-05339454 Sources: https://money.usnews.com/financial-advisors/articles/strategies-for-charity-minded-clients https://www.forbes.com/advisor/investing/donate-stock/

For many of us, a new year is an opportunity for fresh starts and discovering the best versions of ourselves, but some things—like tax contributions and retirement deadlines—don't change much, if at all. And with that shiny new year right around the corner, meeting end of year deadlines and getting tax efficiencies in place now may prepare us for a smoother transition. Read on for several things you'll want to accomplish before 2022 draws to a close. Establish or Contribute to a Keogh Plan or Solo 401(k) In 2022, a Keogh plan, or a tax-deferred pension plan that's available to unincorporated businesses or the self-employed, allows contributions of up to $61,000 per year—far more than the $20,500 that can be contributed to a traditional 401(k). 1 But to take advantage of these tax savings in 2023, the taxpayer must establish (and contribute to) a Keogh plan by December 31, 2022. Take Required Minimum Distributions (RMDs) Anyone with an IRA, 401(k), 403(b), 457, Simple IRA, or SEP IRA must begin withdrawing from these accounts at some point. These withdrawals, which are computed using the applicant's age, life expectancy, and the total balance of the account, are known as RMDs, and are subject to income tax. The SECURE Act boosted the RMD age from 70.5 to 72. But because the penalty for failing to take an RMD (or for taking a distribution that's too small) can be a 50 percent excise tax, missing this deadline can be an expensive mistake. 2 Pay Expenses for Itemized Deductions If you're likely to deduct more than the $25,900 standard deduction (for married couples in 2022) or $12,950 (for single filers in 2022), itemizing your deductions can make sense. 3 But in order to itemize, you'll need to actually spend this money in 2022. Some of the expenses that can be itemized include home mortgage interest, property, state, and local income taxes, medical expenses, charitable contributions, and investment interest expenses. Make Tax-Deductible Charitable Contributions and Annual Tax-Free Gift Generally, taxpayers can deduct charitable contributions so long as these contributions are made in cash and don't exceed 60 percent of the taxpayer's adjusted gross income (AGI). However, certain "qualified" contributions can be deducted up to 100 percent of the taxpayer's AGI. 4 Like other 2022 tax deductions and credits, these contributions must be made during the 2022 calendar year in order to be deductible. Sell Stock The end of the year can be a good time to take stock of your holdings and rebalance them if necessary. You may find that the rise in certain sectors (like tech) and decline in others (like energy) has skewed your asset allocation; selling certain over performing holdings and reinvesting these proceeds according to your desired asset allocation can help bring your portfolio back into line. Before selling stock (and potentially incurring capital gains in the process), you may want to sketch out a rough draft of your federal income tax return to see whether your proposed stock sale will be enough to potentially move you into a higher tax bracket. Sources 1 https://www.investopedia.com/terms/k/keoghplan.asp 2 https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds 3 https://www.investopedia.com/terms/s/standarddeduction.asp 4 https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions 5 https://www.irs.gov/newsroom/irs-seniors-retirees-not-required-to-take-distributions-from-retirement-accounts-this-year-under-new-law Important Disclosures: Investment advice offered through Planned Financial Services, a Registered Investment Advisor. 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. Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market. Asset allocation does not ensure a profit or protect against a loss. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss. 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 Planned Financial Services makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. Tracking #1-05339454

As we approach the end of the year, you may want to review areas that may impact your wealth and estate planning next year. In this year-end planning guide, we examine four critical areas to consider that may affect your finances: Generational wealth transfer- Generational wealth transfer may become more important when an event occurs, such as a death, a marriage, or the birth of a new family member. However, it's essential to plan for generational wealth transfer by ensuring all these crucial actions have been completed: Established a Trust document- If you don't have a trust document, your family may need to go through probate, a tedious court process to transfer your assets retroactively, which can be expensive and public. Updated beneficiary information- Consistently check the beneficiaries listed on your legal documents, retirement savings, and insurance plans, as these designations can outweigh what is in a will. Life transitions that may impact a change in beneficiaries include divorce, the birth of a new child, the loss of a loved one, a marriage, etc. Established directives- Review all legal directives such as power of attorney documents, medical care directives, and your trust document to ensure all information is up to date in case the relationship with the named individual(s) changes. Completed an inventory of assets- Periodically update inventory assets listed in your trust documents, such as real estate, collectibles, vehicles, etc., and intangible assets, such as savings accounts, life insurance policies, retirement plans, ownership in a company, and more. Drafted, reviewed, or updated last will- It is important that your last will details your wishes regarding the distribution of your property, money, and assets that aren't in your trust document. Remember to update your will as your financial and family situation changes. Minimizing taxes- Building wealth and planning for taxes are essential and often require the help of financial, tax, and legal professionals. For some, tax policies can impact how much taxes to pay domestically and abroad when living or working in a foreign country, or if they own companies in a foreign country. Consider these taxes that may impact your tax situation: Income tax- Income tax is a source of revenue that governments impose on businesses and individuals within their jurisdiction. If you work or own a business in a foreign country, you may need to file taxes in more than one country. For this reason, you must consult a tax professional in each country for the latest tax laws. Estate tax and gift tax- The IRS limits the valuation of assets that can pass to heirs' estate tax-free, and states set their own gift tax thresholds that are impacted by where the deceased resided and heirs live. As you plan for who pays taxes when your assets pass to your heirs, work with your financial and tax professionals to determine which tax-advantaged strategies are appropriate for your situation. Generation-skipping tax- The generation-skipping transfer tax is a federal tax that results when a property is transferred by gift or inheritance to a beneficiary who is at least 37½ years younger than the donor. Consult your tax professional on how transferring assets to a grandchild or other heir may impact their tax situation if inheriting from you. Legacy planning- Legacy planning is leaving a legacy for others, which often includes protecting others when you pass on your values and financial dreams. Some individuals give their wealth to benefit their children and their children's children. If the wealth is great enough, endowments may be created to help many people over time. Legacy wealth transfer may become complex due to the types of assets you own, changes in tax legislation, economics, and political environments. You must consult financial, tax, and legal professionals to pass assets without economic consequences to heirs. Succession planning- Succession planning generally involves trusts, private trust companies, and foundations offered in various jurisdictions to ensure your wealth transfers to the next generation as efficiently as possible. There are two types of succession planning for individuals to consider: Generational succession planning- Planning to help ensure your wealth passes to the next generation and is comprehensively managed and passed to the next generation. Business succession planning- If you own a business, business succession planning may cover selling your business and retiring, selling but staying on part-time, and passing ownership to another family member or key employee. Here are some other things you may want to consider in your succession planning: Investment strategies Involving the successors Clarify your values and purpose Work with professionals who will help monitor your situation across generations. Estate planning can be challenging for some due to the complexities of their situation but manageable when done over time. Now is a great time to use this planning guide as you work with your team at Planned Financial Services to plan for the start of the New Year. Important Disclosures Investment advice offered through Planned Financial Services, LLC ("Planned Financial"), a Registered Investment Adviser. Planned Financial and its investment advisors do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties. Please consult your independent advisor as to any tax, accounting or legal statements made herein. This article is distributed for informational purposes only and nothing herein constitutes an offer to sell or a solicitation of an offer to buy any security and nothing herein should be construed as such. All investment strategies and investments involve risk of loss, including the possible loss of all amounts invested, and nothing herein should be construed as a guarantee of any specific outcome or profit. While we have gathered the information presented herein from sources that we believe to be reliable, we cannot guarantee the accuracy or completeness of the information presented and the information presented should not be relied upon as such. Any opinions expressed herein are our opinions and are current only as of the date of distribution, and are subject to change without notice. The investment and tax strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment or tax strategy for his or her own particular situation before making any decision. Planned Financial recommends consultation with a qualified tax advisor, CPA, financial planner or investment manager. 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 or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial. All information is believed to be from reliable sources; however Planned Financial Services makes no representation as to its completeness or accuracy. This article was prepared by Fresh Finance. Tracking #1-05339454 Sources: https://www.investopedia.com/terms/g/generation-skipping-transfer-tax.asp https://www.investopedia.com/articles/personal-finance/070715/quick-guide-highnetworth-estate-planning.asp https://www.investopedia.com/terms/g/generation-skipping-transfer-tax.asp

When it comes to medical or legal advice, the value of getting a second opinion is fairly well established and defined. What about financial decisions? At what point does it make sense to get a second (or a third) opinion on money matters? Here we discuss some benefits of seeking a second financial opinion, including a few situations in which a gut check may not just be useful but downright necessary. Many Eggs, Many Baskets As the adage goes, you never want to put all your eggs into one basket—and jumping headlong into a financial strategy recommended by one person does just that. What if their advice is outdated or does not fit your particular financial situation? What if the person providing the advice may actually be receiving a commission based on the products you select? By getting a second opinion, you will have a stronger strategy and a way to confirm that the initial advice you received was either on target or not suitable for you. Another benefit of a second financial opinion is that it can encourage you to reevaluate and reassess your goals. If your personal, employment, or financial situation has changed since the last time you reviewed your portfolio, it is an excellent time to make sure these changes are taken into account in future decisions. You may also need to reevaluate your investments or rebalance your asset allocation. Finally, by getting a second opinion, you will also have a chance to compare the costs and fees charged by different financial professionals. You may discover that you are happy to pay a higher fee for more tailored advice; on the other hand, you may decide that your financial situation does not warrant advice from someone whose fees are more at the high end of the scale. When You May Need a Second Opinion Situations in which you could benefit from a second opinion include: You are a DIY investor. If you have been managing your own investments, it is a good idea to bring in a professional to give your portfolio a top-to-bottom review. You may discover some opportunities you have missed. You have been using the same financial professional since you began investing. If the second opinion matches up with your original financial professional's advice, you may feel more confident that you are on track. If this advice is different, you will know there is a disconnect somewhere and can work to track it down. You do not have a relationship with a financial professional. If you have not yet partnered with a financial professional, you may not be aware of all the services and strategies available. It is important that any financial professional you choose is a good fit for your style and financial situation. An initial interview can help you assess their investment strategies, values, and principles before you become a client. There are more circumstances in which a second opinion may be warranted, but these three situations cover a great deal of ground. If you're concerned about taking your next financial steps or just want a comprehensive review of your balance sheet, our team at Planned Financial Services can help. Click here to download information and learn more about our firm's complimentary Second Opinion service offering. Important Disclosures Investment advice offered through Planned Financial Services, a Registered Investment Advisor. 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. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss. Asset allocation does not ensure a profit or protect against a loss. This article was prepared by WriterAccess. Tracking #1-05339454

As a business owner, you know the importance of planning for your company's future. To this end, you may have taken steps to learn about buy–sell agreements and the role that life insurance and disability income insurance can play in planning a business buyout. If so, you may be one step ahead of the game. But have you thought about long-term care buyout planning? A Buy–Sell Refresher Let's review an important tool for planning the future of your business. A buy–sell agreement is a legal contract that prearranges a buyer for your share of the business when a triggering event occurs, and it also stipulates the price that the buyer will pay. You may negotiate a buy–sell agreement with your partners, shareholders, members of your management team, or key employees who may have an interest in the company's future ownership. Buy–sell agreements are generally structured in one of two ways: as a cross-purchase agreement or an entity-purchase agreement. A cross-purchase agreement is negotiated between you and each partner or shareholder. If you die or become incapacitated, the parties to the agreement purchase your shares at a previously agreed on price. A cross-purchase agreement generally works best in companies with only two or three owners. As the number of owners increases, it can become expensive and administratively cumbersome for each owner to maintain an agreement with every other owner. For a company with a larger number of owners, an entity-purchase agreement may be more practical. With this kind of agreement, the company takes out a life insurance policy for each owner. At a triggering event, the insurance money collected by the company is used to pay the estate of the deceased owner for that person's share of the business, and the remaining owners avoid any out-of-pocket expenses. When the company buys back a departing owner's shares, the value of the remaining shares increase accordingly. Simply having an agreement in place does not ensure that funds will be available to buy your shares when the agreement goes into effect. Therefore, these agreements are often funded through life insurance (as is the entity-purchase agreement) and/or disability income insurance. In these cases, the triggering event would be death or disability. But what about the possibility of a long-term care event? Preparing for Long-Term Care To create a more comprehensive buy–sell agreement, you may want to consider planning for an accident or illness that requires long-term care. "Long-term care" refers to a variety of medical and nonmedical services provided to individuals with a chronic illness or disability. Most long-term care involves assistance with activities of daily living (ADLs), including, but not limited to, dressing, personal care, meal preparation, and housekeeping. An individual is generally considered to be in need of long-term care if he or she has difficulty performing two or more ADLs due to physical limitations, cognitive impairment, or both. Services are typically provided in a nursing home, in an assisted living facility, or at home. A long-term care event can come about suddenly, as a result of an accident or illness, or gradually, as part of the aging process. When an owner or partner requires long-term care, the company may find it difficult to continue to pay that owner's salary, and other owners may not have the funds to buy the departing owner's shares. Preparing for long-term care when drafting a buy-sell agreement may be important to the future of your company. A buy–sell agreement could trigger the sale of a departing owner's shares, and the agreement could be funded by long-term care insurance. Long-term care buyout planning may help preserve the value of the business and ensure continuity. Be sure to consult a long-term care insurance professional or your team at Planned Financial Services for more information. Important Disclosures Investment advice offered through Planned Financial Services, a Registered Investment Advisor. 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 material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state's insurance department for more information. 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. This article was prepared by Liberty Publishing, Inc. Tracking #1-05331505