Make Charitable Donations Easy During Retirement
Can you make charitable donations easy during retirement? A lot of people, especially many ultra wealthy individuals and couples, enjoy sharing their fortunes with charitable causes. In fact, some of the biggest donors in the United States are also some of the country’s wealthiest individuals, including Bill and Melinda Gates (Microsoft), Warren Buffet (Berkshire Hathaway) and Mark Zuckerberg (Facebook). While many of the nation’s richest people may get ridiculed for their wealth, how they spend it and for the small percentage of taxes they pay on their income, the truth is, many of these individuals give away millions, or even billions to charitable causes.
Giving Even After Retirement
Many people who are wealthy, while not in the same class as these individuals, still want to continue giving to charity even after they retire and stop collecting a paycheck. This might seem like a difficult proposition, but there are some simple methods to accomplish this task. One such way to provide enough money for you in retirement, as well as for charitable giving, is to open a donor-advised fund, which are often funded with stock shares. Essentially, this allows you to create two buckets of funds: one for donations and another for spending needs. More than half of these funds are used to allow people the opportunity to continue donating to charities even after they retire.
Grow Charitable Giving Funds Without Taxes
There are several large firms that are the greatest holders of these donor-advised funds, including Schwab Charitable, Fidelity Charitable and Vanguard, but you can also set one up through many community foundations, as well. No matter where you set one up the tax benefits don’t change. When you create one of these funds you get to deduct the amount you contribute to the fund in the year that you make the contribution.
After that, you are allowed to determine when the grants go to operating charities under your own terms. In addition, the money set aside for charity gets to grow tax-free while sitting in the fund, which increases the amount of money you have available for giving. That is a win-win situation. Your available funds for charitable giving grow without increasing your tax bill.
GROCO Can Help You Set Up the Right Account
If you have reached the age of retirement and you still enjoy giving to charity, you can have the funds to do it even without a steady income. By examining all of your options for retirement and financial planning, including a donor-advised fund, you can set up the perfect way to still give to charity and enjoy the tax benefits at the same time. Planning for retirement can be tricky, especially for those who have more income. It’s important to set up the right kind of account so you have enough for living expenses while still being able to donate.
At GROCO, we understand taxes and financial planning for retirement. There are many options to choose from, which is why it’s a good idea to sit down with an experienced financial team that has your best interest in mind. Please contact one of our offices in California by calling 1-877-CPA-2006, or contact us online.
We hope you found this article about “Make Charitable Donations Easy During Retirement” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business. Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most. They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges. Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
If You’re Using Airbnb for Some Extra Cash Don’t Forget About Taxes
Have you heard about the latest craze in hospitality? It’s the idea of renting out your home for a night or two, or perhaps even slightly longer, to someone looking for a place to stay other than a hotel. The leader in the industry is Airbnb, which works much like Uber, the personal cab driver…
If You’re Going to Argue About Taxes Your Argument Better Be Good
Lets face it a lot of taxpayers make mistakes on their tax returns. It’s also true that there are plenty of other taxpayers that willfully falsify their returns in order to save on their total tax bill. Some people even go as far as to simply skip out on filing a return all together. You…
Another Tax Scam Is Upon Us – Beware of Back Taxes Bullies
No one likes a bully. Bullies can wreck havoc on their victims. From swirlies to stealing lunch money, bullies are a big problem. The same can be said for tax bullies, except they want to steal a lot more than your lunch money. There have been several recent reports from different locations around the country…
Consider Taxes and Choose Your Retirement Location Carefully
Last week we discussed the best and worst states to retire in when it comes to taxes. So what kinds of factors actually play a role in coming up with those numbers? Choosing a place to call home when you retire is important and there are many factors that can play a role in where…