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Director of Development 1761 East Woodcrest Avenue La Habra, California 90631-3260 Tel . 562-691-4227; Fax 562-691-5327 |
Director of Major Gifts 1733 Sixteenth St., Washington, DC 20009–3103 Tel. 202-232-3579, Ext. 143, Fax 202-387-1843 Or call 800-486-3331, Ext. 143 council@srmason-sj.org |
The start of the New Year is an excellent time to review and fine tune financial arrangements.
Many people start out each New Year with a list of resolutions they believe will make them happier, healthier, and wealthier in the months ahead. Toward the latter goal, some make resolutions to minimize the effects of taxes, manage the risk of potentially volatile investments, and plan how to make good retirement-funding decisions. Once made, these resolutions can provide benefits for the upcoming year and for years beyond. If you make these resolutions now, chances are you will not be unhappy when April 15 rolls around. You may also find that planning for the future wisely makes for excellent New Year's resolutions that are long remembered.
To begin with, it is always wise to think about such things as deferring certain incomes and on-job bonuses and maximizing your tax deductions; and, of course, this goes along with properly planning your charitable contributions. Remember, every dollar you give to charity reduces your taxable income and saves tax dollars, if you itemize your deductions. Good planning enables you to control when to recognize interest from certain investments for tax purposes by choosing those interest-crediting dates to match your objectives.
Monitor your investment portfolio regularly to be sure it is performing at levels you want. Also, determine the risks of holding your investments. Some steps to reduce risk in your portfolio would include things like selling investments with uncertain or downside potential. Many people are concerned about the safety of their investments because of the up-and-down nature of the stock market and the fact the Dow Jones Industrial Average, the Nasdaq, and S&P's 500 have often simultaneously moved in different directions. You may feel it is time to sell some of your holdings to protect gains you have built up over the last several years.
Certainly, it is better to dispose of a stock than to incur a significant loss in value. There is, of course, a problem: if your investment has appreciated, a sale will result in a gain and will generate capital gains tax—which can be sizable if the appreciation is substantial. One solution, however, is using appreciated securities to fund your charitable gifts. You can take a deduction for the full fair-market value of long-term appreciated stock when you give it to the Scottish Rite Foundation. Plus, you don't have to pay any tax on your paper gain. Even if you are enthusiastic about a stock's prospects, making a gift with appreciated securities may still be advisable. Use the cash you had planned to contribute to replace the stock in your portfolio to establish a higher basis against which future gain will be measured.
Please consider the benefits of participating in the Scottish Rite Foundation Charitable Gift Annuity Program or the Pooled Income Fund. A contribution to these programs will provide lifetime income and attractive tax benefits, such as the bypass of capital gains tax and a tax deduction. The minimum contribution to the Scottish Rite Foundation Gift Annuity Program or the Pooled Income Fund is $5,000. Participants are now able to designate a local Scottish Rite Foundation as the remainder beneficiary. To receive a free analysis of a contribution to the Gift Annuity Program or the Pooled Income Fund, please contact our development office at 1–800–486–3331, ext. 143.
The best measure of an investment's success is how well it meets your objectives. Your objectives are likely to change over the course of your life, and your investment strategies should, too. Younger people generally should have a larger percentage of their assets invested for growth as opposed to income. This has the added benefit of reducing current taxable income during peak earnings years.
As we age, most of us will not want as much of our assets exposed to market risks inherent in equities. Although an overly conservative investment plan can fall victim to inflation, many older persons will want to shift more into income-producing investments. Unfortunately, liquidating holdings to reinvest for income can trigger the same capital gains tax challenges noted above. And your choice of alternatives should be made with an eye toward the bottom line. For example, if you were to invest in a tax-exempt instrument paying 5.25% and you are in a tax bracket of 28%, your equivalent taxable investment would have to equal 7.29%. Or, if you are in a 36% tax bracket, your equivalent would be 8.20%. It is possible to convert non-income producing assets into an important source of lifetime payments, all while generating major income-tax deductions and without paying capital gains tax.
I think you get the idea! To get wealthier, you just have to plan well and manage risk. Of course, Brother Tom and Earl are here to help you anytime, day or night.
Once again, our toll-free number is 1–800–486–3331,
ext. 143, just give us a call and we will help you with your New
Year's financial resolutions.
Please Note: This information is distributed with the
understanding that the authors are not engaged in rendering legal,
accounting, or other professional service. If legal advice or
other expertise is required, the services of a competent professional
should be sought. From: A Declaration of Principles jointly adopted
by a Committee of the American Bar Association and a Committee
of Publishers.
To learn more about the Scottish Rite Pooled Income
Fund, click here.
For a chart illustrating Scottish Rite Foundation, S.J., USA,
Charitable Gift Annuity Rates–Single Life, please click here.
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Ill. Thomas M. Boles, 33°, G.C. (left in photo) has worked extensively in fund-raising for children's programs throughout our Fraternity. For more information on planned giving, call Bro. Tom at 562–691–4227 (Fax 562–691–5327) or the Scottish Rite Foundation, Southern Jurisdiction, U.S.A., at 202–232–3579, ext. 143. Ill. Earl E. Ihle, Jr., 33°, is our development team's Director of Major Gifts. He has been a member of the Fraternity for 25 years and served in 1978 as Master of Lafayette Lodge, No. 111, Baltimore, Maryland. He is also a member of Boumi Shrine Temple in Baltimore, the York Rite, and a dual member of the Scottish Rite Valleys of Baltimore and Washington, D.C. You can reach Bro. Ihle toll free at 1–800–486–3331, ext. 143. |