The Change-up: Saving $$$ by Bunching

Happy Monday!

I hope you enjoy this edition of The Change-up, my weekly newsletter sharing the latest market news and personal finance tips. If you're interested in learning more about working with me, click my scheduling link at the bottom.

Please feel free to forward it along to friends!

Quote of the Week

"I'm Back" - Michael Jordan

Life gets busy. Work gets busy. I've spent the last few months wrapping up my Chartered Advisor in Philanthropy? designation. Sorry for the hiatus. I'm glad to be back in your inbox.

Song of the Week

The Story

The S&P 500 index snapped a six-week winning streak, with the healthcare and materials sectors weighing us down. Big tech and consumer discretionary were the only sectors to finish in the green. This week will be telling, as more Q3 earnings reports roll in.?

My View

A lot has happened over the last few months.?

The Federal Reserve cut interest rates by 0.50% (with more cuts coming). The U.S. continues to be the strongest economic nation in the world. The market keeps hitting all-time highs. We had a commercial space walk. Vandy football is good? The professional football team in Nashville that won't be mentioned isn't. So, mostly good things!

While all eyes are on next week's Presidential election, I'm looking elsewhere. Historically, markets have cared about our President very little. What they do care about is if companies are making money.?

As of Friday, 74% of S&P 500 companies have reported higher-than-expected earnings per share.?

If things continue, Q3 will be the 5th straight quarter for year-over-year earnings growth for the S&P 500 index, according to Factset.?

But the devil is in the details. Companies have beat expectations 77% of the time over the last five years. So we're slightly lagging thus far.?

I believe the stock market is ultimately driven by businesses making money. Certainly, in the long term, it is. So when the noise gets loud next Tuesday, make sure to focus on what's really important when it comes to your money

Coming Up This Week

• Earnings Season (all week)
• October's Job Report (Friday)

I've shared quite a few strategies in this section over the last two years to help you plan prudently and save money.?

With that said, I want to transition this section and make it more practical.?

So, I'm going to begin sharing real strategies we use with clients to keep more money in their pockets.

First up, bunching charitable gifts.

We have clients who give $35k/year to non-profit organizations. In the past, they have itemized $35k in deductions on their tax return, saving them $11,200 in taxes a year, or $22,400 in taxes over two years.?

We recommend gifting $70k in 2024 (utilizing a donor-advised fund) and $0 in 2025. They'll claim the $30k standard deduction next year. This could save the client $22,400 in taxes in year one and $9,600 in taxes in year two.?

The client saved an additional $9,600 in taxes by giving the same amount!

Isn't financial planning just the best?!

Let's have a great week!

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