The theme this week is year-end tax-saving giving tips. I’m sharing with you how you can be generous, do good, and cut your tax bill all at the same time.

Today I’m talking about the problem with donating cash. Most of us write checks to charity or give a few dollars here and there, but for many of us, that’s actually a really inefficient way to give. 

One way to give the same amount but to be more efficient so more dollars end up in the hands of your favorite charities, is by giving appreciated assets, like stocks. 

For example, let’s say 10 years ago you bought a stock for $20,000. The stock has done well and is worth $50,000 today. Let’s say you want to make a sizeable donation to charity this year, and you plan to sell that stock. You have 2 options: 

1. You can sell the stock, pay the taxes, and donate the proceeds to charity. If you did that, using a few assumptions about your tax situation, you’ll end up donating about $43,000 to charity, after accounting for the taxes paid on the sale of the stock. 
2. If on the other hand you donate the stock directly, you pay $0 in tax, and all $50,000 goes to the charity. As a result, you get a bigger tax deduction from your donation, and more money goes to the charity! A win-win! 

So when you have appreciated assets that you’re looking to sell, first ask yourself if it makes sense to make a donation with part or all of that asset before you sell. And as always with these issues, be sure to consult with your tax advisor as well. 

Your retirement is perhaps the most important financial decision you’ll ever make. You want to get it right. Well, so do I. For the last 12 years, I’ve been helping clients just like you make the transition into retirement. If you want to talk one-on-one with me about whether or not you can retire, head on over to truenorthra.com, where you can book a 15 minute call with me, at a time that’s convenient for you. The call is confidential, free, and I promise to help guide you on whatever is weighing most on your mind right now regarding your retirement. So head on over to truenorthra.com and book a call today. 

Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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