(KTVI)- The end of the year is an important time for getting your finances in order. It is also the time for end of the year giving. Well how can you donate to others and still help yourself? Travis Freeman know how. He is a Certified Financial Planner and President of Four Seasons Financial Education.
- Investor’s remorse - If you took a hot stock tip from that didn’t pan out, consider selling it at a tax loss. Then, use the cash proceeds for a gift to charity. This may make more sense than giving cash to a charity out of pocket.
- Investor’s delight - However, if you’re lucky and happened to get a tip on an investment that has done really well, you’re probably going to be faced with paying taxes on that gain once it’s sold. If you’ve owned the investment for over a year, consider giving the investment in-kind to charity. Based on your personal tax situation, you may not owe any tax on the gain if given to charity.
- The gift that keeps on giving - This is a simple, yet helpful tip. If you have non-IRA investments that you hope to gift to charity at death, but you would rather see the charity enjoy the money while you`re living, consider reallocating that investment to something that pays a nice dividend. Then, you can use that dividend to gift to charity each month. You can still gift the original investment to charity at death, but you maintain control of the investment should you need it and you can watch the charity enjoy the monthly donations.
Website: Four Seasons Financial Education