Control the Investment Market

Investing for gain, is a parallel. A best guess of the future. What criterion should we use to tip the scales in our favor?

The people are important! The issuers or advisors of the offering, as well as the management personnel of the business we are investing in. Usually, we are advised by a person we went to school with, maybe a trusted family friend or contact we have known who is reliable. In this “new investment” market we are somewhat vulnerable. With internet and high-speed communication opportunities are here now, but gone tomorrow, the pace is frightening. The new investment market is world-wide, making investment friends needs be almost a “warlike” exercise. We have to make fast friends to survive, and prosper. When everybody says “do it now”, instead slow down! Make your first determination based on the people involved. No right-minded advisor should assume you are going to invest immediately. I would like you to have conversations, see some correspondence, understand the mindset and goals, before investing.

Understand the investment. Do not take assurances from those who proposed to be competent. Make sure you understand. Ask questions specifically and repeatedly. Will all questions be answered affirmatively? Probably not. There are certain generic risks, both in time frame and yield spread, everyone in an investment should be conscience of. Inability to satisfy questions will not necessarily dis-qualify the investment opportunity. Personal determination, sometimes a forgotten item these days, will benefit you.

Controlling your investments means knowing your investment pace. How long is your investment time frame? Are we seeking the long-term accrual retirement income or short-term monthly income stream? Anything over 10 years is long-term investment. We should be conscience of interest rate variables, time vs. money decay should be adjusted and thought out. As we sort out our personal investment agenda, we turn our thought to the prospects which we can invest in. Not all good or great investments are suitable to each investor. If you have college tuition to be prepared for in two years, a five-year investment overlapping this event will not be advantageous. I would not assume I could borrow or sell this investment on suitable terms to accomplish this. With work, wide variety of investments can mitigate these issues. This can be long-term growth stocks, bonds, short-term equities, or C.D.’s, or whatever tickles your fancy. Unfortunately, investing in the right securities is just like work, It might be tedious. Your money will go out and reproduce itself, but it will need guidance from you!

Boosting the Tax Benefits of Charitable Giving

If you are age 70½ or older, you may have an opportunity to make donations to a qualified charity directly from traditional and Roth IRA distributions. In addition to creating tax advantages, these donations also can satisfy any IRA-required minimum distributions for the year.

How an IRA charitable distribution works

Provisions that allow charitable donations from these plans have commonly been approved as part of the tax law on a year-to-year basis. In many cases, the laws are passed at the end of the year. It’s important to note that Congress is still working on approving these provisions for 2015.

Historically, qualified charitable distributions from IRAs allow donations of up to $100,000 per person. Married individuals filing a joint return can make gifts up to $100,000 donated from each spouse’s own IRA ($200,000 total). People also have the flexibility to give to multiple charities provided that total charitable distributions from an individual’s IRA do not exceed the $100,000 per person limit.

The benefits of an IRA charitable distribution

With an IRA charitable rollover, money moves directly from the individual’s IRA to the qualified charity. This is an important distinction from a direct gift of cash. Some of the benefits include:

• The transfer to the charity directly from your IRA qualifies as your “required minimum distribution” from your IRA for this tax year, if you are distributing from a traditional IRA or an inherited IRA.

• You aren’t required to report the withdrawal from your IRA as taxable income, which potentially reduces your tax burden. Maintaining a lower level of taxable income is particularly important for people in the top tax brackets who may risk being subject to higher tax rates that apply to those above certain income thresholds.

• If you don’t itemize deductions, you still enjoy the tax benefits of a charitable contribution by not having to claim the income that was distributed directly from the IRA to the charity.

Start planning now – contact your financial and tax advisors

There is no guarantee that Congress will approve provisions for IRA qualified charitable contributions again, although if history is any guide, approval to extend the provision for at least 2015 could come before the end of the year. However, you can consider making an IRA gift directly to a charity before Congress works out the final details. Instruct your IRA custodian to transfer money directly from your IRA to a charity or charities following the rules that have existed in the past. If Congress fails to extend the IRA qualified charitable contribution provision, you can still claim the distribution as income and also claim the gift to the charity as a charitable deduction, assuming you itemize deductions.

Now would be a great time to contact your financial advisor to discuss the implications that an IRA charitable distribution can have on your overall financial picture. Also, be sure to check with your tax advisor before you make any decisions about charitable donations from IRAs and to how to properly report them.

Buffie the Tax Heiress is a reputable and experienced accounting firm in Atlanta. If you are looking for a personal or business accountant in Atlanta then call us today. Thay can help with personal taxes, business taxes and more. Their offices are conveniently located to Atlanta, Fairburn, East Point, Decatur, Fayetteville, College Park and more. Call their professional tax accountants today.