A Tax Reduction Strategy For People Who Give Back

Your financial plan serves more than just you. When executed with intention and heart, it helps you forge an achievable path to something greater.

Many of our clients, for example, include charitable giving in their plan for financial success. Why? They consider it to be their job to support a community that has supported them. It’s why they plan and invest. It’s why they achieve.

At Vance Wealth, it’s our job to help you achieve more — especially when it comes to giving back.

Changes That Affect Your Wallet

The 2018 changes in tax legislation raised the standard deduction which will benefit most tax payers since many who used to file itemized deductions will likely file a standard deduction. This change will have an impact on charitable giving as the tax deduction may not apply in 2018 and beyond if you will no longer be filing itemized deductions. The question becomes: How can you maximize charitable deductions while continuing to give at the level you desire?

A Strategy To Save More, Give More

We know that, the more you save in taxes, the more you have in your pocket to accomplish something greater.

“It’s part of our duty to help people give thoughtfully and utilize the tax code in a fashion that will save them money and enable them to give more in the long run,” said John Vance, President of Vance Wealth . “If you have the heart to give, we want to help you do so in a way that takes care of you and the community.”

A Donor Advised Fund (DAF), for example, can be an excellent strategy for high earners who want to give more during the later years in life.

Think of a DAF as a savings account for charitable giving. It allows you to make larger charitable contributions now, and receive the immediate tax deduction, while saving funds to give to charities during retirement. It sets you up to reap the benefits of the tax deduction in your working years, when you’re earning more.

“If you accelerate your donations early on, you get the tax deduction now — while your income is higher,” John said. “Then, when you’re no longer working, you have a charitable account to continue your giving.

Ultimately, a DAF is designed to help maximize your tax deductions during your working years, while setting you up to give throughout your lifetime. It puts more in your pocket, so you can give more to others.

How To Implement This Strategy

If you are interested in setting up a DAF, or have more questions about how it can benefit you, we are happy to help — no strings attached. We offer a 20-minute consultation call to anyone looking for ways to give more. This is not a sales call, and it doesn’t cost you a thing. We, too, want to help give to the community that’s given to us, and we consider it our duty to share these charitable giving strategies with non-profits and the public alike.

To learn how to implement this giving strategy — or how to inform donors of this opportunity — please contact Shanele, Marketing Director at Shanele.Stoll@VanceWealth.com to set up a call to speak with a financial advisor.

About Vance Wealth:

Since 2003, Vance Wealth has served as a premier financial planning practice passionately committed to helping clients and families succeed at every step of their financial journey. Serving Southern California, the practice delivers innovative and comprehensive wealth management strategies precisely customized to each client’s goals and needs. Our mission is to help our clients and families succeed at every step of their financial journey, inspiring them to achieve more. We are committed to stand by their sides to help make the difficult decisions, celebrate life’s joys and be a trusted partner for every moment in between. To learn more, call 661-775-0950, email info@vancewealth.com or visit VanceWealth.com. To keep up with more exciting news, follow @VanceWealth on Facebook.

No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. All investments include a risk of loss that clients should be prepared to bear. The principal risks of Vance Wealth strategies are disclosed in the publicly available Form ADV Part 2A.

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.