 Helpful Articles
from David Vollrath,
Union County Foundation Executive Director
The Foundation encourages you to work closely with your professional advisor(s)
as you develop your estate plan and consider your present and future charitable goals. |
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January Investment Checkup
(Part of a series of articles on charitable giving and the Union County Foundation
by David Vollrath - Exec. Dir.)
There is no better time than the beginning of a new year to give yourself an investment checkup. 2003 was an unusually
good period for the stock market following several dismal years. Many investors who were able to wait out the previous
downturn have found that their patience has finally been rewarded. Considering all the volatility of recent years
this might be a very good time to evaluate your investments. Investments include your money market funds, certificates
of deposit, stocks, mutual funds, bonds, and other assets.
Why is January such a desirable time to review your investments? First, many of your investments have increased
in value enough to have recovered the losses incurred previously. It might be a good time to consider further diversification
by selling some of these investments. Second by taking a good look at your investments you may determine that they
are not providing the income that you originally expected. For example many certificates of deposit are now earning
less than 2% and many money market funds yield even less. Even in present times of low inflation these are not
very desirable returns.
What are some reasonable options for those who would like to increase their income? One alternative to consider
would be the purchase of highly rated dividend yielding stocks. Such stocks might pay dividends of 4%, 5%, or even
more. With recent tax code changes stock dividends are now taxed at a maximum rate of 15% (same rate as capital
gains) rather than previous ordinary income rates as high as 35%.
Another alternative for investors who are reluctant to make large investments in stocks might be to consider a
charitable gift annuity. Gift annuity rates can be 6%-10% depending on your present age. A charitable gift annuity
allows you a significant initial charitable deduction, provides fixed lifetime income at desirable interest rates,
and allows you to leave a financial legacy to your favorite local charitable organization(s) upon your death. Charitable
gift annuities can help you raise the average return on your portfolio to levels more in line with your goals and
expectations.
The Union County Foundation is equipped to help you achieve your charitable goals by providing pertinent information
and assisting you with planned giving. Please call us at 937-642-9618, email info@UnionCountyFoundation.org, reference our website at www.emarysville.com/unioncountyfoundation, or stop by our Marysville
office at 126 N. Main St. We are committed to helping you.... “preserve your footprint in time.” |
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