Page 7 - Jupiter West - November '24

Jupiter West, Page 7
Understanding Moody Teenagers Financial Focus ®

By Jim Forgan, Ph.D., life. He had an intact family, a cell phone, nice place to
Licensed School live, and he was doing well in school. She thought, “What Donor-Advised Funds: A
Psychologist is there to be depressed about?” Testing revealed he had
“My teen son has a hard very strong feelings of inadequacy and was struggling Smart Way To Give
time showing emotions, with his identity. He believed he was not in control of
has a hard time to make his outcomes so, “Why should he try?” By Sally Sima Stahl
friendships, has a hard It took mom a while to get dad to recognize the struggle You can find several
time to feel happy and but after our results review meeting he understood ways to make charitable
contented, has a hard time additional support was needed. Dad actually initiated gifts but if you’re looking
to do activities that he the conversation with his teen by saying, “I feel that for a method that can
considers useless or are our relationship is strained. It may not bother you but it provide multiple tax
mentally or physically bothers me and if you would, I’d like you to meet with benefits, along with an
demanding. Help me figure out what is wrong with him!” a counselor. I will as well because I need some help efficient platform for
It’s not uncommon for teenagers to be moody since knowing how to help you and our family.” The teen agreed giving year after year, you
they are a ball of changing hormones, have variable sleep to dad’s request. might want to consider a
patterns, and are vying for independence. All this occurs School neuropsychological testing was the process donor-advised fund.
while your teen is dealing with the pressures of school, which provided answers. Call (561) 625-4125 if you are Once you open a
social media, and exposure to drugs and porn. As the concerned about your child and would like understanding. donor-advised fund (DAF), you can contribute many types
mom wrote, her teen was withdrawn and his behavior Testing is completed in one day and we test children of assets, including cash, publicly traded stocks, bonds,
had changed within the past few months. Prior to this he through young adults for autism, dyslexia, ADHD, CDs or non-cash items such as closely held business
was a happier person and a decent student. anxiety, and depression. Our website is JimForgan.com. interests, art or collectibles. You can then decide how to
Our testing revealed this teen was depressed. Mom invest the money, possibly following a strategy suggested
had wondered if he was depressed but thought looking by the DAF sponsor organization you’ve selected. The
down at him from the 30,000-foot view he had a good next step involves choosing which charities to support,
how often to provide support (such as once a year) and
how much to give each time. You’re essentially free
to direct the money to any charities you like, provided
they’re IRS-approved charitable organizations.
Now, let’s look at the possible tax advantages offered
by a DAF:
• Immediate tax deduction – A few years ago, changes
in tax laws resulted in a vastly increased standard
deduction, which, in turn, led to far fewer people itemizing
on their tax returns and having less incentive, at least from
a tax standpoint, to contribute to charities. But if you don’t
typically give enough each year to itemize deductions,
you could combine several years’ worth of giving into
one contribution to a DAF and take a larger deduction
in that tax year. And you can claim that deduction, even
though the DAF may distribute funds to charities over
several years.
• Tax-free growth of earnings – Once you contribute
an asset to a DAF, any earnings growth is not taxable to
you, the DAF or the charitable groups that receive grants
from the DAF.
• Avoidance of capital gains taxes – When you
donate appreciated stocks or other investments – or
for that matter, virtually any appreciated asset – to
a DAF, you can avoid paying the capital gains taxes
that would otherwise be due if you were to simply sell
the asset and then donate the proceeds to charitable
organizations. Plus, by receiving the appreciated asset,
rather than the proceeds from a sale, the charitable
groups can gain more from your contribution. And
you can also take a tax deduction for your donation.
While these potential tax benefits can certainly make a
DAF an attractive method of charitable giving, you should
be aware of some potential tradeoffs. Once you contribute
assets to a DAF, that gift is irrevocable, and you can’t
access the money for any reason other than charitable
giving. Also, your investment options are limited to
what’s available in the DAF program you’ve chosen.
And DAFs can incur administrative costs in addition to
the fees charged on the underlying investments.
You may want to consult with your financial
professional about other potential benefits and tradeoffs
of DAFs and whether a DAF can help you with your
charitable giving goals. Also, different DAF sponsors
offer different features, so you will want to do some
comparisons. And because DAFs can have such
significant implications for your tax situation, you should
consult with your tax professional before taking action.
If a DAF is appropriate for your situation, though,
consider it carefully — it might be a good way to support
your charitable giving efforts for years to come.
This article was written by Edward Jones for use by
your local Edward Jones Financial Advisor, Edward
Jones, Member SIPC.
Edward Jones is a licensed insurance producer
in all states and Washington, D.C., through Edward
D. Jones & Co., L.P., and in California, New Mexico
and Massachusetts through Edward Jones Insurance
Licensed and Insured Agency of California, L.L.C.; Edward Jones Insurance
Agency of New Mexico, L.L.C.; and Edward Jones
Insurance Agency of Massachusetts, L.L.C.
Edward Jones, its employees and financial advisors
cannot provide tax advice. You should consult your
qualified tax advisor regarding your situation.
Contact us at (561) 748-7600, Sally Sima Stahl, CFP ,
®
AAMS , 1851 W. Indiantown Road, Ste. 106, Jupiter, FL
™
33458.