Monthly Newsletter Dec. 2023
Natalia Ivanova, IAR?
Founder and CEO, Financial Planning Specialist at NewGen Wealth Creation | Former Financial Advisor at Morgan Stanley
Each month, I'll provide you with the latest news, tax tips, and resources to help you stay on top of your finances. This month, I'll help you make the most of your charitable giving while minimizing your tax burden.
KEY POINTS
Happy Holidays!
"To my incredible readers,
As the holiday season approaches, I want to take a moment to express my heartfelt gratitude for your unwavering support. Your readership has been the driving force behind NewGen Wealth Creation's success, and I am deeply honored to have over 300 of you as part of this incredible community.
As we embark on this festive season, I hope your hearts are filled with an abundance of joy, laughter, and cherished moments with loved ones. And may your finances flourish and surpass your expectations from last December.
Reflecting on the past year, I'm immensely proud of the milestones we've achieved together:
Thank you for being a part of NewGen Wealth Creation's incredible journey. Your trust and enthusiasm drive me to continue providing exceptional financial guidance and support.
As a token of appreciation, I've prepared special gifts for you, our valued readers. You'll find them at the end of this newsletter."
Natalia Ivanova
Founder and CEO
Ground Rules for Giving
?As we approach the season of giving, let's delve into the world of charitable contributions and discover how your generosity can not only make a meaningful impact but also bring potential financial benefits. In this edition, I've compiled insightful tips to help you navigate the intricate landscape of charity giving and taxes.
Here are some ground rules to guide you:
Tax Treatments by Type of Gift
Understand the tax advantages and considerations for different types of gifts:
Donating Appreciated Investments
Let's say Sarah and Steve are married, file a joint tax return, and want to donate $100,000 worth of stock to their local animal shelter. They are in the 37% federal ordinary income tax bracket and are subject to the 20% long-term capital gains tax rate, plus the 3.8% net investment income tax. They have two options: They could sell the stock and donate the cash, or they could just donate the stock directly to the charity. Let's take a closer look at the table below.
Donating appreciated investments can increase tax savings, let's see how:
Giving Through Specialized Charitable Vehicles
Explore unique giving vehicles such as donor funds, private foundations, charitable remainder trusts, pooled income funds, and qualified charitable distributions from IRAs. These options can simplify your giving and amplify your impact.
While the tax benefits are undoubtedly valuable, the essence of charitable giving lies in making a difference. Evaluate your options, consult with financial and tax advisors, and find the strategy that aligns with your values and financial goals.
U.S. tax deadline:
All credit card, ACH, Google Pay, and PayPal donations must be made by midnight on December 31st in your time zone.
Check envelopes must be postmarked by USPS on or before Saturday, December 30th.
Wire transfer donations must be received by Friday, December 29th.
Stock must be transferred by your firm/broker by Friday, December 29th.
Crypto must be transferred by December 31, 2023.
Pro Tip: Boost charity, cut taxes: QCDs let IRAs age 70.5+ donate up to $100,000 directly to nonprofits, bypassing RMD tax burdens (and higher brackets). Secure Act 2.0 expands options with trusts and annuities.
Tax Savvy Ways to Give
Many of us share a dual goal: supporting causes we care about while maximizing tax benefits. Here are some strategies to achieve both, whether you're contributing to a loved one's education, reducing estate taxes, or making charitable donations.
1. Supercharge Education Savings:
领英推荐
2. Reduce Estate Taxes:
3. Donate Smart:
4. CRATs for Income & Charity:
Talk to your advisor: Discuss these strategies and tailor them to your financial goals.
Bonus: At NewGen Wealth Creation, we offer tax-smart giving strategies to maximize your impact and potentially reduce taxes. Let us empower your philanthropic journey!
Remember, the joy of giving extends beyond tax savings—making a positive impact is the ultimate reward.
Pro Tip:
Combine tax-loss harvesting (selling investments at a loss to offset gains) with a cash gift. Use the proceeds to donate to your favorite causes and claim a charitable deduction, potentially reducing your tax bill. This clever strategy lets you help others and keep more of your own money.
On The Markets - 2023 Recap
2023 surprised us all. After a shaky start, the S&P 500 soared 23%, leaving investors with a tempting question: double down in 2024? Proceed with caution. Expect a rollercoaster ride next year, with economic twists, interest rate wobbles, and political drama adding spice to the mix.
Bitcoin staged a dramatic comeback, rising over 150% and reaching a 20-month high. Whispers of US interest rate cuts and potential Bitcoin ETF approval fueled the fire. Could the rally continue in 2024? The Bitcoin halving in April and the looming ETF decision suggest so, so buckle up. The countdown for a Bitcoin ETF decision adds another layer of intrigue. Could this be the year digital currency finally finds its way onto Wall Street?
The Federal Reserve hiked rates four times in 2023, totaling 11 hikes since 2022. But the winds are shifting. Hints of future cuts with inflation easing could benefit markets. We expect at least three rate reductions next year. This is good news for most, but keep a close eye on monetary policy – it will be your guidepost through the economic maze. Don't forget the housing market: mortgage rates dipped below 7%, easing the pressure on potential homeowners, landers and realtors.
2023 was a year of unexpected twists and turns, and 2024 won't be any different. So, how do you navigate this dynamic landscape in 2024? Be strategic, stay informed, and adapt your approach as needed. Remember, knowledge is power.
While serendipity can sprinkle sugar on your portfolio, intentionally tending the garden of your investments, not just tossing in seeds and hoping for orchids, is what truly blossoms into bountiful returns.
While the S&P 500's 95% return over the past five years is impressive, building a well-diversified, carefully selected portfolio of individual stocks could potentially provide significantly higher returns, exceeding 300% in some cases. (See illustration below.) However, this approach also carries significantly higher risk and requires extensive research and careful analysis before investing any capital. It's important to remember that past performance is not necessarily indicative of future results.
It's crucial to understand that achieving such high returns involves a great deal of risk and volatility. Thorough due diligence and a comprehensive understanding of individual stocks and market dynamics are essential before undertaking such a strategy. Remember, diversification is a key principle of responsible investing. Spreading your investments across various asset classes and individual securities helps mitigate risk and protect your capital.
Stay sharp, stay adaptable, and make 2024 your year in the markets!
This information should not be relied upon as research, investment or tax advice, or a recommendation regarding any products, strategies, or any security or digital asset in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
Here are your FREE gifts:
Give yourself and your loved ones the gift of peace of mind with a Family Legacy Organizer. In the event of an emergency, this thoughtful and practical gift will provide the vital information your and they need quickly and easily.
Holiday Cheer with Financial Security - Spread the cheer and share the gift of financial well-being. Start the new year off right by investing in your financial future. (Promo code "CHEER24" offers 20% off NewGen Wealth financial planning session & products)?
See you in 2024! Wishing you a season filled with generosity and meaningful contributions.
Natalia Ivanova
Founder and CEO
Financial Planning Specialist
Natalia Ivanova, Founder and CEO, Financial Planning Specialist at NewGen Wealth Creation, and former financial advisor at Morgan Stanley, has 8+ years of experience working with travel-loving professionals and entrepreneurs, from small business owners to CEOs of Fortune 500 companies. A dog mom, immigrant, and Puerto Rico-based world traveler, Natalia is proud to use her platform and experience to empower others to achieve their financial goals and build a fulfilling life.
Our commitment to our clients:
Every day is dedicated to honoring the trust and faith my clients have placed in me.?I?listen to their concerns, understand their needs and continuously work to find solutions and structures that help meet their goals.
NewGen Wealth Creation LLC is an Investment Adviser registered with the Securities & Exchange Commission (SEC), principally located in the state of Puerto Rico. All views, expressions, and opinions included in this communication are subject to change. Please contact us if there is any change in your financial situation, needs, goals or objectives. The information contained in this electronic communication is intended only for the use of the recipient. For your privacy and security, do not include sensitive information using emails that are not secured.
NewGen Wealth Creation LLC is an Investment Adviser offering services in Puerto Rico and in other jurisdictions where it is exempt from registration. All views, expressions, and opinions included in this communication are subject to change. Please contact us if there is any change in your financial situation, needs, goals or objectives. The information contained in this electronic communication is intended only for the use of the recipient. For your privacy and security, do not include sensitive information using emails that are not secured.
Risk Considerations: There is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market. There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events. Accordingly, investors can lose money.