NEWS & INSIGHTS
2025 SOCIAL SECURITY BENEFIT UPDATES
By Social Security Administration
September 2025
Social Security benefits will increase by 2.5% in 2025, with changes affecting over 72.5 million Americans. Additionally, the Social Security Fairness Act has ended provisions that previously reduced benefits for certain workers, allowing for potential increases in their monthly payments.
Recent Changes to Social Security Benefits
Cost-of-Living Adjustment (COLA) for 2025
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A 2.5% increase in Social Security and Supplemental Security Income (SSI) benefits will take effect in January 2025 for approximately 68 million beneficiaries.
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SSI recipients will see increased payments starting on December 31, 2024.
Earnings Limits for 2025
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The earnings limit for individuals under full retirement age will rise to $23,400. Benefits will be reduced by $1 for every $2 earned above this limit.
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For those reaching full retirement age in 2025, the limit will be $62,160, with a reduction of $1 for every $3 earned over this amount until the month they turn full retirement age.
Social Security Fairness Act
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The Social Security Fairness Act, effective January 5, 2025, eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which previously reduced benefits for certain public employees.
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Beneficiaries affected by these provisions may receive retroactive payments starting from January 2024.
Future Projections
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The Social Security Board of Trustees has indicated that the OASI Trust Fund may be depleted by early 2033, potentially leading to a 77% reduction in scheduled benefits unless legislative action is taken.
Important Reminders
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Beneficiaries should monitor their accounts for updates regarding their benefits and any potential changes due to the new legislation.
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It is advisable to stay informed about any changes that may affect eligibility or benefit amounts, especially in light of the upcoming adjustments.
New Social Security Policy Requires In-Person Identity Verification
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Also, a major policy change at the SSA will soon require more Americans to visit local offices in person. This policy is to verify user identity before completing claims or making account changes. The new security measures aim to prevent fraudulent claims.
Early Investing for Milestones: First Home, Wedding, or Gap Year
A Flexible Approach to Life-Stage Wealth Building
When we talk about investing, retirement often dominates the conversation. But life is full of milestones that come well before age 65: buying a first home, taking a career break, getting married, or funding travel or a passion project.
That’s where flexible, non-retirement investing comes in. With the right strategy, you can build wealth intentionally, on your own timeline.
Step 1: Set Up “Life Goal Buckets”
Before you choose investment vehicles, get clear on your goals and timeframes. These categories are common:
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First Home Down Payment (3–7 years)
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Gap Year or Sabbatical (2–5 years)
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Wedding or Family Planning (1–3 years)
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Passion Projects or Career Shift (3–10 years)
Create a separate “bucket” for each goal—this can be a mental account, a spreadsheet, or even dedicated sub-accounts at your brokerage or bank.
Step 2: Choose the Right Investment Vehicles
1. Taxable Brokerage Accounts
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Best for: Goals 3+ years out
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Why: No early withdrawal penalties, more investment choices
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Growth: Long-term capital gains rates can be favorable if you hold assets over a year
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Portfolios offer low-cost, hands-off portfolio management
2. High-Yield Savings + CDs
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Best for: Goals less than 3 years away
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Use Case: Saving for a wedding or small sabbatical
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Bonus: FDIC-insured, predictable, zero market risk
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Top HYS rates are currently above 4.5% APY (as of July 2025)
3. A Well-Balanced Portfolio
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Best for: Investors seeking steady growth with moderate risk over the medium term (5–20 years)
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Why: Combines stocks and bonds to balance growth potential and capital preservation, helping reduce volatility
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Alternative: Customize allocations by adjusting the stock-to-bond ratio to better match your risk tolerance and goals
Unlike an FDIC insured savings account or CD that offers a fixed rate for a fixed period, investment performance will fluctuate so that you may receive more or less than you originally invested when you redeem. So, it's important to have a longer investment time horizon for these dollars.
Step 3: Timeline Examples – “$25K in 5 Years”
Let’s say you’re saving $25,000 for a home or extended sabbatical:
Monthly Savings. Annual Return Value in 5 Years
$368 5% ~$25,000
$400 7% ~$28,500
$500 4% ~$33,000
Bonus: How to Become a Millionaire with Higher Contributions and Returns
Want to see the power of consistent investing with a more aggressive savings plan and higher returns? Here’s a simplified example assuming a 20-year timeline:
Monthly Contribution Annual Return Value in 20 Years
$1,000. 7% ~$553,000
$1,500 8% ~$1,060,000
$2,000 10% ~$1,643,000
These are hypothetical examples for illustration purposes only and do not represent the actual performance of any particular security. Future performance cannot be guaranteed, and investment yields will fluctuate with market conditions.
Conclusion: Your Financial Journey, Your Terms
Life’s milestones happen at different times for everyone, and your investing strategy should reflect that. Whether you’re saving for your first home, planning a wedding, or dreaming bigger with career shifts and passion projects, flexible, goal-focused investing lets you build wealth on your own timeline.
Ready to take control of your financial future? With clear goal buckets, smart investment choices, and a personalized plan, you can grow your wealth purposefully, without waiting for retirement.
If you want tailored advice or help crafting a plan that fits your unique goals, we are here to guide you every step of the way. Let’s build your financial success story, starting now.
Opinions are those of the speaker and not necessarily those of Raymond James. This material is being provided for informational purposes only and is not a complete description, nor is it a recommendation. There is no guarantee that these statements, opinions or forecasts provided will prove to be correct. Investing involves risk and you may incur a profit or a loss regardless of strategy selected. No investment strategy can guarantee your objectives will be met. Past performance has no guarantee of future results. Every investor's situation is unique, and you should consider your investment goals, risk tolerance and time horizons before making any investment decision.
Budgeting and Planning an Affordable Getaway in California
July 2025
Whether you're craving time in nature or a lively city vibe, California has plenty of affordable weekend escapes for every taste.
Everyone loves a quick trip, but pair it with budget-friendly planning, and it's even better. Despite California's pricey reputation, there's something for every budget.
How Much Should You Spend?
A great way to enjoy regular travel without financial stress is the 3% Monthly Rule:
Save 3% of your monthly income, and you'll have enough for two week-long trips per year. If you can stretch a little more, it’s also reasonable to spend 5–7% of your annual income on vacation.
Annual Travel Budget Guideline
What If You Can't Save That Much? Try a Staycation
If saving 3% or more isn't doable right now, don't stress; you can still take a break without going anywhere.
Staycations offer many of the same benefits as travel, without the costs.
Benefits of a Staycation
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No travel stress — Skip airports and packing.
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Low-cost fun — Treat yourself on your terms.
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Explore local areas — Discover parks, cafés, trails, or events in your area.
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Customizable — Take a whole weekend or just an afternoon.
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Rest without guilt — Recharge without the financial pressure.
Easy Staycation Ideas
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Have a themed movie or game night with friends
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Have a picnic at a local beach or park
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Take a cooking class
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Visit a local spa
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Take a scenic drive or a short hike nearby
A staycation can be just as restorative as a getaway, and it's entirely on your terms.
Affordable Weekend Getaways in Southern California
Channel Islands National Park
Take a budget ferry ride from Ventura or Oxnard to these beautiful islands. Camp or stay nearby to enjoy peaceful beaches, hiking, and wildlife.
San Clemente
This beach town south of Orange County offers surf culture, charming streets, and affordable dining. Relax on the pier or nearby state beaches.
Ojai
Just 90 minutes from LA, Ojai is a soulful, nature-filled escape. Hike, enjoy art galleries, and catch the "Pink Moment" sunset on a modest budget.
Palm Springs (Off-Season)
Travel in the summer or fall to get great deals. Explore canyons, retro motels, and botanical gardens without overspending.
Inexpensive Weekend Getaways in Northern California
Humboldt Redwoods State Park
Explore towering trees, scenic drives, and peaceful hikes, without the cost of major parks.
Chico
This friendly college town offers Bidwell Park, breweries, and a local farmers market.
Nevada City
A charming Gold Rush town with antique shops, riverside hikes, and affordable stays.
Point Reyes National Seashore
Coastal trails, fresh oysters, and scenic overlooks near San Francisco.
Inexpensive Romantic Getaways for Couples
Carmel-by-the-Sea
Walk the fairy-tale streets, enjoy wine tasting, and cozy up in a cottage near the beach.
Julian
A historic mountain town east of San Diego, known for apple pie, antique shops, and affordable inns.
Cambria
Perfect for quiet coastal romance. Explore Moonstone Beach and Paso Robles vineyards.
Guerneville
Along the Russian River, this hidden gem offers glamping, wine, and redwood hikes.
Affordable Weekend Trips for Families
Shasta Caverns
Take a boat ride and explore stunning caves. Nearby hiking and picnic areas make this a fun family adventure.
Crescent City
Near the Oregon border, this coastal town gives families access to redwoods, tide pools, and great places to stay.
Sequoia National Park
Introduce kids to massive trees and ranger-led programs with family-friendly campgrounds.
Monterey
Visit the aquarium, kayak with sea otters, and explore tide pools, which are fun and educational.
Free Summer Concerts in the Park
June 2025
Milestone Ages for Financial Planning
by Dean A. Romo
May, 2025
Whether or not you've stopped counting birthdays, its important to know that some birthdays are more important than others when it comes to financial planning. Milestone birthdays can remind you to consider your options and discuss key decisions with a financial professional
50: You can constribute more to your retirement plan
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When you turn 50, you can contribute more to your 401(k) or other retirement plan. In 2024, The maximum contribution limit is $23,000 with an additional $7,500 catch-up contribution allowed for those turning age 50 or older. For IRAs, the 2023 contribution limit is $ 7,000 ($ 8,000) if you are over 50).
59 1/2: No penalty if you withdraw your funds from your IRA
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Starting at age 59 1/2, you can take withdrawals without penalties, although it's worth noting that taxes may be due based on the type of your IRA. At this age, consider talking to your financial professional about creating a retirement income plan. It can also be a good time to consider consolidating old 401(k)s from previous employers and IRAs. Doing so can make it easier to track and organize your investments e.g manage your asset allocation, diversification and rebalancing. plus, it may help reduce taxes and fees.
62: You can start receiving Social Security
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At 62, you’re able to start receiving Social Security income. However, doing so can reduce your monthly benefits by 30% versus waiting until your Social Security full retirement age (FRA—the age when you are entitled to 100 percent of your Social Security benefits, which are determined by your lifetime earnings). And that reduction is permanent.3 Therefore, talk to a financial professional to help you with this decision. Visit the Social Security website to get personalized retirement estimates.
65: You can sign up for Medicare
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You’ll want to get the timing right on this. Medicare’s initial enrollment period lasts seven months, starting 3 months before you turn 65, and ending 3 months after the month you turn 65. If you miss your 7-month Initial Enrollment Period, you may have to wait to sign up and pay a monthly late-enrollment penalty.
66: Full Retirement Age for people born 1943–1954; 67 for people born after 1960
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Full Retirement Age is the age when you are entitled to 100% of your Social Security benefits, which are determined by your lifetime earnings. The amount you receive when you first get benefits sets the base for the amount you will receive for the rest of your life. If you were born between 1955 and 1959, full retirement age gradually increases.5 If you were born after 1960, your full retirement age will be 67.5 You can increase your retirement benefits by waiting past your Full Retirement Age to retire. Each month you put off filing up to age 70 earns you delayed retirement credits that boost your eventual benefit.
70: Social Security benefit increases as a result of delaying retirement stop at age 70
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You don’t have to begin collecting Social Security by age 70, but your benefit will not increase if you delay claiming past your 70th birthday.
70 ½ or 72: RMDs begin
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Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement-plan account owner must withdraw annually starting with the year that you turn 72 (73 if you reach 72 after December 31, 2022).6 The requirement allows the government to finally tax the money, which had been growing tax-deferred to encourage saving for retirement. Investors who fail to take an RMD may face a steep penalty, equal to half the amount they didn’t withdraw.
73 and beyond
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According to the MIT AgeLab, a division of MIT that studies aging, retirement tends to get more complex as we age. Things you’ll likely need to address include, housing decisions, driving challenges, maintaining friendships, caregiving, organizing your most important info, and having fun and a purpose.
For guidance on decision making on your milestone birthdays,
talk to your financial professional or tax professional.
401(k) limit increases to $23,000 for 2024, IRA limit rises to $7,000, IRS, 11/1/23, Consult a financial professional or tax professional for more information. Should you take Social Security at 62? Fidelity, 7/27/23. When does Medicare coverage start? Medicare.gov, 6/13/22. Retirement Benefits, Social Security, 2023. Retirement Plan and IRA Required Minimum Distributions FAQs, IRA, 3/14/23
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized
investment advice. Information contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot
be guaranteed. Diversification does not ensure a profit or protect against a loss in a declining market.
The MIT AgeLab is not an affiliate or subsidiary of Hartford Funds.
Hartford Funds Distributors, LLC, Member FINRA. MAI346 0523 2818945
Chaos or Calm? Panic or Perspective?
Putting recent events into historical context
by Dean A. Romo
April, 2025
In today’s polarized climate, it’s easy to get caught up in the emotion of the moment rather than use history as a guide of what is likely to transpire in the months and years ahead. I would suggest that the recent market fluctuations offer all of us a chance to reflect on economic cycles and opportunities for growth, drawing on historical patterns while having a forward-looking perspective.
Here is how I see things:
Markets
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Markets often experience strong growth periods, as seen in 2023 and 2024, followed by corrections. Historical data, such as the 10-15% annual corrections observed in the S&P 500 since the 1950s, suggest these adjustments are routine and pave the way for renewed stability.
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On average, market corrections occur every couple of years, with a typical decline of 14% from peak levels, aligning with current trends and signaling a natural market rebalancing.
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Markets thrive on clarity, and uncertainties, (such as trade policy shifts), can prompt short-term volatility. Past trade negotiations, like the 1994 NAFTA talks, initially sparked market concerns but ultimately fostered economic integration.
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Short-term market swings, like those during the 1987 Black Monday sell-off, often reflect sentiment rather than fundamentals. Over time, markets stabilize, as seen in the sustained bull market of the late 1980s.
Tariff’s & Trade
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The impact of proposed tariffs remains uncertain, but history shows trade policies often evolve through negotiation, as seen in the U.S.-Japan trade agreements of the 1980s, which opened markets and boosted mutual growth.
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Tariffs have long served as diplomatic tools. The Smoot-Hawley Tariff Act of 1930, though controversial, led to reciprocal trade agreements in the 1930s that lowered global trade barriers, suggesting current policies could spur constructive deals.
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Past trade agreements, such as the 2004 U.S.-Australia Free Trade Agreement, faced skepticism but ultimately expanded markets. Current policies may similarly defy critics by fostering competitive domestic growth.
Policy
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Reciprocal trade policies aim to create fairness, a principle echoed in the 1947 GATT agreements, which laid the groundwork for balanced global trade and economic cooperation.
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Rapid policy changes, akin to structural reforms under leaders like Franklin Roosevelt during the New Deal, can be disruptive but often accelerate progress. Bold action now could streamline inefficiencies and strengthen economic foundations.
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With political momentum often fleeting, as evidenced by the 1994 Republican midterm gains after Clinton’s early reforms, swift action capitalizes on public support to drive meaningful change.
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The early 1980s under Reagan saw market turbulence and high inflation, yet tax reforms and deregulation fueled a decade of prosperity, illustrating that short-term challenges can precede transformative growth.
Economy
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Strengthening domestic industries, like the manufacturing surge during World War II, enhances resilience and independence. Revitalizing U.S. production could spark innovation and job creation, echoing the tech boom of the 1990s.
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Economic adjustments may bring temporary challenges, but slowdowns often precede robust recoveries, as seen in the post-1982 economic boom following Volcker’s inflation-fighting measures, fostering long-term prosperity.
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The U.S. economy is one of if not the strongest in the world and is well positioned to withstand the challenges that we now face.
By embracing adaptability and learning from history, I am confident that the United States should be able to navigate these changes to build a stronger, more self-reliant economy with opportunities for all. Historically speaking, when it comes to analyzing the U.S., our economy and our stock market, the only realism is optimism. Try not to get caught up in the constant negativity that now represents our media and stay patient, stay diversified and stay optimistic.
Just like the 2020 pandemic and the rising interest rate cycle of 2022, this too shall pass.
The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of the author and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.
RATES & DATES
March 2025
The Interest Rate Environment…
Interest rates peaked in 2024 following 7 interest rate increases between September 2022 to July 2023. Starting in September of last year the Fed has cut interest rates 3 times, leading to market volatility and cautious investor sentiment. Despite these challenges, the current interest rate environment has created opportunities in fixed-income investments, with yields still at multi-year highs. For those seeking more conservative investment options, this may be an ideal time to lock in higher rates on fixed-income assets, providing a stable return in an uncertain market. As always, balancing risk and opportunity remains key in navigating the evolving economic landscape of 2025.
Rates Available Now
Important Dates to know for Retirement Account Contributions
Financial Documents: What To Save And What To Throw Away
Forbes – February 2025
Managing the influx of paper in our homes can be overwhelming, especially with financial documents piling up. While businesses are increasingly going paperless, many of us still face challenges organizing mail, receipts, and tax documents. Knowing what to keep and what to discard is essential for maintaining order.
How Long Should You Keep Financial Documents?
Seven Years or Longer:
Tax records should be kept for at least seven years due to the IRS's audit statute of limitations. This includes tax returns and supporting documents like W-2s and 1099s. Keep receipts related to assets, such as home renovations, for as long as you own the property.
One Year:
Non-tax-related bank and credit card statements, investment statements, pay stubs, and large purchase receipts should be retained for one year. Paid medical bills should also be kept for a year unless there’s an unresolved insurance dispute.
Less Than a Year:
Most receipts can be discarded unless they relate to warranties, tax returns, or insurance claims. Monthly bills can typically be tossed after payment verification. Canceled checks can be shredded once you confirm your bank statement is accurate, except for those related to tax returns.
Documents to Keep Forever:
Important documents to retain indefinitely include birth certificates, Social Security cards, marriage certificates, wills, and military records. Keep documents related to any purchased or insured items for as long as you own them, including titles and insurance policies.
How to Store Financial Documents
To reduce clutter, establish a reliable storage system that is accessible, secure, and organized.
Paper Storage:
Use a filing cabinet with labeled folders or bankers boxes for organization. For critical documents, consider a fireproof and waterproof safe. Safe deposit boxes are another option, though access may be limited.
Electronic Storage:
Opt for electronic billing and statements from financial institutions. Scan documents or take photos for digital storage. Use external hard drives or flash drives for backups, and consider cloud-based solutions like Dropbox or Google Drive for secure, accessible storage. Ensure you retain physical copies of essential documents if needed in the future.
By following these guidelines, you can effectively manage your financial documents and reduce paper clutter in your home.
Big Goals for 2025? Here’s How to Break Them Down and Achieve Them
January 16, 2025
Written by Hao
(Editor in Chief at Balance the Grind)
Big plans for 2025? This guide will help you turn that mountain of a goal into small, doable steps for real success.
So, you’ve got big plans for 2025—maybe you’re aiming to launch a new business, finally write that book, or train for your first marathon. Whatever it is, setting ambitious goals can be exciting and energizing. But let’s be real: big goals can also feel overwhelming. You start with all the enthusiasm in the world, but as the weeks go by, things get messy, and suddenly, your goal seems out of reach.
That’s where breaking down your goals comes in. Taking a huge, daunting goal and turning it into smaller, manageable steps is the key to actually sticking with it and seeing progress. Think of it as turning a mountain into a series of stepping stones—it makes the climb a whole lot easier (and less intimidating). Here’s a simple, practical guide to breaking down your big goals and actually making them happen in 2025.
Start with Clarity: Define Your Goal in Detail
Before you can break down your goal, you need to be crystal clear on what it actually is. Vague goals like “get fit” or “grow my business” are hard to act on because they don’t have a clear finish line. Instead, get specific. For example, instead of “get fit,” try “complete a 10K run by June.” Instead of “grow my business,” try “increase revenue by 20% by December.” The more specific your goal, the easier it will be to map out a plan.
Break It Down Into Milestones
Once you’ve nailed down a clear goal, it’s time to create milestones. Think of these as the mini-goals that will guide you along the way. If your goal is a year-long project, consider setting quarterly milestones. Each milestone represents a significant chunk of progress. Let’s say your goal is to write a 60,000-word novel by the end of 2025. Breaking it down into four quarterly milestones might look like this: Q1: Write 15,000 words Q2: Reach 30,000 words Q3: Hit 45,000 words Q4: Complete the draft and start revisions. This way, instead of focusing on the overwhelming idea of writing a whole novel, you’re just aiming to hit that next 15,000-word mark.
Create Monthly and Weekly Targets
Now that you’ve got your milestones, break them down even further into monthly and weekly targets. This step helps you stay consistent and trackable. Using the novel example, if your Q1 goal is 15,000 words, that breaks down into: Monthly target: 5,000 words per month Weekly target: About 1,250 words per week. Suddenly, writing a novel doesn’t seem so crazy when you’re just focusing on 1,250 words at a time. The same approach works for fitness, business, or personal development goals.
Track Your Progress
One of the best ways to stay motivated is by tracking your progress. Whether it’s ticking off a checklist, filling in a habit tracker, or using an app, tracking gives you a visual reminder of how far you’ve come. If you’re a pen-and-paper person, a simple notebook or journal can do the trick. Prefer something digital? Apps like Trello, Notion, or even a shared Google Sheet can keep you organized and on track. The key is consistency—track your progress regularly so you can spot patterns, celebrate wins, and tweak your approach if needed.
Build in Rewards
Who doesn’t love a good reward? Hitting milestones can be tough, so give yourself something to look forward to. Rewards don’t have to be expensive or elaborate—they just need to make you feel good. Here are a few reward ideas: After a month of consistent work: A weekend trip or a fancy dinner out. After completing a milestone: Buy something you’ve been eyeing or take a full day off to relax. Celebrating your wins keeps you motivated and reinforces the idea that hard work pays off.
Anticipate Obstacles (And Plan for Them)
Let’s face it—life happens. Work gets hectic, motivation dips, or unexpected stuff pops up. The trick is to anticipate potential obstacles and have a plan to deal with them. Some common obstacles: Time constraints: Try blocking out non-negotiable time slots in your calendar for goal-related tasks. Lack of motivation: Keep a “why” list—remind yourself why you set this goal in the first place. Feeling stuck: If progress stalls, don’t quit—adjust. Change your approach, seek advice, or take a short break to reset. By planning for setbacks, you’re less likely to get derailed when they inevitably come up.
Stay Flexible
While sticking to your plan is important, flexibility is key. Sometimes goals evolve, timelines shift, or priorities change. And that’s okay! If halfway through the year you realize your original goal isn’t quite what you want anymore, it’s totally fine to pivot. Staying rigid for the sake of it won’t do you any favors.
Find an Accountability Partner
Having someone to keep you accountable can be a game-changer. This could be a friend, a mentor, or even an online community. Sharing your progress (and your struggles) with someone else keeps you motivated and makes it harder to quit.
Just Start
The hardest part of any big goal is often getting started. Don’t wait for the perfect moment or ideal conditions—just take the first step, no matter how small. Once you start, momentum builds, and before you know it, you’ll be well on your way to crushing your 2025 goals. Remember, big goals aren’t achieved overnight—they’re the result of consistent, small actions over time. You’ve got this! Ready to make 2025 your best year yet? Let’s go!
Raymond James is not affiliated with and does not endorse the opinions or services of Hao or Balance the Grind.
This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services, Inc. does not guarantee that the foregoing material is accurate or complete. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.
Financial To Do List for 2025
December 2024
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Sign up for Client Access and get a $25 fee credit when you elect paperless delivery. Also view all your account information online or on the Raymond James client access mobile app. (Clients can install the app from the Apple App Store for iPhone users, or the Google Play Store for Android users.
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Review the beneficiaries on your retirement account(s) to make sure they are up to date.
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Add a TOD (transfer on death) to your investment account(s).
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Set up an ACH on your accounts to streamline disbursing or receiving funds.
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Consider consolidating old retirement accounts (i.e. 401k plan)
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Set up a trust and get your estate planning in order (i.e. revocable trust, simple will, advanced healthcare directive, power of attorney)
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Understand you budget for 2025!
Please contact us if you need any help on any of the above.
Merry Christmas and Happy New Year!
Strategizing for Effective Charitable Giving
By John Jennings for Forbes
November 2024
Americans are generous. They gave $471 billion to charity in 2020, nearly 80% by individuals (and the remainder from corporations and foundations).
Why do we give to charity?
While the reasons vary by individual, the top ones are:
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A reaction to personal experience. Examples are giving to an alma mater, a place of worship, or a cause that has affected themselves, a family member, or a friend.
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A need to make a difference, do something about a problem, or take a stand on an issue. For instance, to respond to a catastrophic local or global event like the Ukrainian refugee crisis.
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The motivation to receive recognition and benefits. There is a wide spectrum of psychological and emotional needs to be recognized, from a simple “thank you” to having your name on a building. Giving also signals virtue.
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A desire to strengthen bonds with a community. This includes giving that is based on personal relationships or returning a favor.
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The belief that giving is good to do. Some people believe in the value of giving itself. They may also feel a spiritual or moral obligation.
All these reasons have a common foundation: we give because it makes us feel good. Research has found that giving to charity increases happiness and an overall sense of well-being for the giver. Some studies have found that giving money to benefit others increases the giver’s happiness more than spending money on themselves. It just feels good to give.
Beware of Unorganized and Reactive Giving
Yet not all charitable giving is created equal. It’s been found that charitable giving that is strategic and planned is more satisfying for the donor than reactive or unorganized giving.
How to Be a More Effective Giver
How can we be more strategic and effective with our giving so we feel better about it?
Adopt a Top-Down Strategy
Start by defining your top-down strategy, how much you want to give to charity each year, and roughly which charities or causes you will support. For example, you may decide that you want to donate about $40,000 and that you’d like 25% to go towards education, 40% to environmental causes, 15% to support the arts, and 20% to various charities that you’ll decide about as the case arises (or solicitations arrive in the mail).
As you formulate your strategy, think about your values and passions and how your giving can further them. Which problems do you want to help solve?
Select Charitable Organizations
Once you’ve decided how much you’d like to give and how you want to allocate it, you next need to select some charities.
First, review the charities to which you usually give. Are there any that aren’t solving problems you care about? Are you giving to some because you’ve given in the past? It’s okay to stop giving to charities that you don’t connect with strategically or emotionally. And don’t feel bad about not giving to organizations that solicit you.
There are several ways to find charitable organizations that line up with your top-down strategy:
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Use a charity recommender service like Giving Compass, Charity Navigator, Charity Watch, or Give Well. These organizations have large, searchable databases of charitable organizations in many fields.
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Ask your local community foundation for assistance. They will have insight into charities that are doing effective work in the areas you want to contribute.
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Find another donor, such as a foundation with expertise in an area, and give in parallel to them or just to them.
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Make a site visit to a charity to learn more about them and help you decide whether you want to give to them. For those in Southern California check out Operation Help a Hero from Camp Pendleton (Check back after Nov. 25th for more specifics) Also, Operation Christmas Child, Salvation Army
Monitor Your Giving
Third, monitor and evaluate your giving. A key to feeling good about your giving is knowing if it’s effective.
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Periodically set aside time to review charities to which you give. Look at their websites which often detail the projects they undertake. Many charity websites have a blog or an area for news.
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Many charities produce an annual impact report detailing how effectively they are addressing their core mission. Make sure you are on the list to receive these reports from your charities.
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Galas and other events hosted by a charity can provide valuable information about the organization’s achievements and deepen your mutual relationship.
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For your most important charitable relationships, periodic meetings to learn about their good works provide great insight into the organization and the impact your charitable dollars make.
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The tax returns of every charity are open to public inspection and can be found through the website Guidestar. A charity’s tax return provides valuable information about its financial health and where and how it spends its money.
How much charitable giving is tax deductible?
Generally, charitable cash contributions you can deduct from your taxes are limited to up to 60% of your adjusted gross income (AGI).
Can RMD be donated?
Yes, money from an individual retirement account (IRA) can be donated to charity. What’s more, if you've reached the age where you need to take required minimum distributions (RMDs) from your traditional IRAs, you can avoid paying taxes on the money by donating it to charity. (We will help you coordinate this.)
What qualifies as charitable giving?
Giving money or property, such as clothes, household items, or even a vehicle, to a qualified 501(c)3 nonprofit is considered charitable giving. A charity must have a 501(c) status if you want to deduct your donations from your federal taxes.
Charitable giving is personal — there is no one right way to do it. The most important things are that you feel good about your giving and you are making a difference in the world.
Material prepared by Forbes, an independent third-party.
Raymond James is not affiliated with and does not endorse the opinions or services of John Jennings or Forbes. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of John Jennings and not necessarily those of Raymond James.
Make the most of Medicare's open enrollment period
October 2024
With open enrollment season upon us, ask yourself a few questions to make sure you're getting the most from Medicare.
Medicare’s open enrollment season is upon us. Between October 15 and December 7, you are able to make changes to your Medicare Advantage plan and prescription drug coverage.
During this time, you can change from Original Medicare to a Medicare Advantage plan or vice versa, or switch from one Medicare Advantage plan to another Medicare Advantage plan. You can also join a Medicare Advantage or Medicare prescription drug plan for the first time or drop your drug coverage completely.
Even if you’re satisfied with your current plan, open enrollment presents a great opportunity to make sure you’re getting the most out of Medicare. Every year you should compare your current plan to other plans in your area in case another plan offers better health and/or drug coverage at more affordable prices.
The coverage provided by insurance companies often changes each year. You could wind up paying more out of pocket on healthcare expenses throughout the year.
Here are some tips to help you get started:
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Ask yourself: Have my needs changed? Is my current coverage adequate? Will the cost of my current plan be going up? Are there comparable, lower cost plans available?
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Review the annual notice of change from your current plan provider. You should receive this in September.
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If you have a Medicare Advantage plan, make sure your doctor is still accepting your plan next year. If your doctor is out of network, you will have to choose a new plan or pay higher out-of-pocket costs.
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Carefully review your plan for prescription drug coverage and determine your copayment and coinsurance costs.
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If you switch from a Medicare Advantage plan to Original Medicare, you will want to join a standalone Part D plan to get Medicare drug coverage.
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Compare plans using the Medicare Plan Finder at medicare.gov.
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Get one-on-one assistance from the State Health Insurance Assistance Program.
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Call the Medicare Rights Center at 800.333.4114 for free counseling.
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All changes to your Medicare plan will take effect on January 1 following the enrollment period.
Medicare decisions can be complicated. If you have any questions about open enrollment, or if you’d like to discuss how healthcare costs factor into your overall financial plan, please contact your financial advisor.
How Are Social Security Spousal Benefits Calculated?
By Claire Boyte-White (Investopedia)
September 2024
If you’re eligible for Social Security spousal benefits, how much you’ll receive depends on a number of factors, including your age, the amount of your spouse’s benefit, and whether you have other retirement benefits available to you.
Who’s eligible? Anyone whose spouse, ex-spouse, or deceased spouse was or is eligible for benefits, once you have reached the age of eligibility, is eligible.
The maximum spousal benefit you can receive is 50% of your spouse’s benefit at their full retirement age. The precise amount you’ll get and when you’ll get it depend on several circumstances, including your spouse’s age and past income, your age and past income, and more.
That leaves some room for you to maximize the amount you receive. And if that amount is less than what you would get based on your own past income, you’ll automatically get the higher amount.
Key Takeaways
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The maximum spousal benefit is 50% of the other spouse’s full benefit.
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You may be eligible if you’re married, divorced, or widowed.
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You can collect spousal benefits as early as age 62, but in most cases, the benefits are permanently reduced if you start collecting before your full retirement age.
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If your past income earns a higher benefit, you’ll receive that rather than the spousal benefit.
Who Qualifies for Social Security Spousal Benefits?
If your spouse has filed for Social Security benefits, you can also collect benefits based on the spouse’s work record, if:
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You are at least 62 years old.
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Regardless of your age, you care for a child who is entitled to receive benefits on your spouse’s record, and who is under age 16—or a child who receives Social Security disability benefits. (Note: Even if you make a claim before you reach your full retirement age, your spousal benefits will not be reduced if you’re caring for a child who qualifies under the age or disability rules.)
When you apply for spousal benefits, you’ll also be applying for benefits based on your own work history. If you’re eligible for benefits based on your earnings, and that benefit amount is higher than your spousal benefit, that’s what you’ll get. If it’s lower, you’ll get “a combination of the two benefits that equals the higher amount,” according to the Social Security Administration (SSA).
How Spousal Benefits Are Calculated
Spousal benefits are based on how much the other spouse would receive if that person began collecting Social Security benefits at the full retirement age. It increases gradually from age 66 to 67. For those born in and before 1942, it’s 65. For those born in the years 1943 to 1959, it’s age 66. For those born in 1960 and after, it’s 67.
No matter when your spouse actually retires, or if your spouse dies, that person’s full benefit amount is relevant to you in calculating your spousal benefit entitlement.
The SSA has an online calculator that shows you the effects of early retirement—that is, the percentage of your spouse’s benefits you will receive, based on your age when you apply.
The short answer to the calculation is this: You’re eligible for half of your spouse’s benefit amount as long as you wait until your full retirement age to apply. The earlier you file, the less you’ll get.
Claiming Early or Late
The amount you receive will depend on when you begin to claim benefits. You can claim spousal benefits as early as age 62, but you won’t receive as much as if you had waited until your own full retirement age. For example, if your full retirement age is 67 and you choose to claim spousal benefits at 62, you’d receive a benefit equal to 34.6% of your spouse’s full benefit amount.
The amount you receive increases with each year you delay. At your full retirement age (age 67 in this example), you’d be eligible for the maximum, which is 50% of your spouse’s full benefit. So there is no incentive to file for spousal benefits later than your own full retirement age.
If You’re Receiving Other Retirement Benefits
The calculation gets a bit more complicated if you are eligible to receive benefits from a government pension or foreign employer not covered by Social Security. In that case, you may still be eligible, but the amount will be reduced.
For example, if you have a government pension for which Social Security taxes are not withheld, the amount of your spousal benefit is reduced by two-thirds of the amount of your pension. This is known as a government pension offset.
For example, suppose you are eligible to receive $800 in Social Security spousal benefits and you also get a $300 pension each month from a government employer that didn’t withhold Social Security taxes. Your Social Security payment is reduced by two-thirds of $300, or $200, making your total benefit amount from all sources $900 per month ([$800 - $200] + $300).
For more information on your personal social security benefits go to The United States Social Security Administration | SSA.
Raymond James is not affiliated with Claire Boyte-White or Investopedia.