Sharing Your Wealth

July 8, 2008

Why Give?

I have encountered nearly every reason imaginable for making contributions to charitable organizations.  The most common, however, are the following:

  • Compassion for those in need
  • Religious and spiritual commitment
  • Desire to perpetuate one’s beliefs, values, and ideals
  • Support for the arts, sciences, and education
  • A desire to share “good fortune” with others
  • The tax laws of the United States encourage these gifts by granting tax deductions for them in many cases.  If individual citizens voluntarily help meet our country’s needs, their contributions reduce the responsibility of the government.  Many would also argue that private support of charitable activities is more efficient than public support.

    Due to the tax treatment of charitable contributions, individuals may realize not only immediate tax benefits but also advantages in terms of after-tax cash flow and the size of the estate they may pass on to their heirs.  Gifts to charity during one’s lifetime or at death, if structured properly, will reduce the estate tax liability.  An additional benefit of lifetime gifts is that an income tax deduction is available within certain percentage limitations.

    Securities offered through LPL Financial, Member FINRA/SIPC. Advisory services offered through Wealth Enhancement Advisory Services, a registered investment advisor.

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    Investment for Inflation

    July 1, 2008

    Investments That Can Help In Times Of Inflation

    If you’re worried about possible effects of inflation on your investments, there are Inflation-Protected Securities (IPS). IPS can help offset downfalls that might occur due to inflation. There are several different kinds.

    Treasury Inflation-Protected Securities (TIPS): A benefit of a TIP is that the government guarantees timely payment of principal and interest.

    Municipal & Corporate Inflation-Linked Securities: A Municipal Security is issued by a government entity. Payments can be a bit lower but will change with the Consumer Price Index. A Corporate Security offers higher yields (adjusted monthly for inflation) but at the cost of greater risk.

    Inflation-Linked Certificate of Deposit: Insured by the FDIC, these Certificate of Deposit rates are adjusted annually and tend to produce lower yields than Treasury notes or CDs.

    Inflation-Linked Savings Bonds: Savings Bonds are backed by the U.S. government and come with the benefit of being exempt from state and local tax. They are meant to be long-term, but can be accessed after one year.

    It’s important to remember that although these Inflation-Protected Securities can help deter the effects of inflation on your investments, they are not without risk. Talk to your Financial Advisor to find out what fits your portfolio and your needs.

    Securities offered through LPL Financial, Member FINRA/SIPC. Advisory services offered through Wealth Enhancement Advisory Services, a registered investment advisor.