TIP 1 Financial Literacy Month
April is financial literacy month and being financially literate doesn’t mean being a financial expert, it means knowing enough of the basics so that you don’t need to be anxious about your wealth journey. We hope to explain some of that jargon and how it applies to recent events in our monthly newsletters and blogposts, and are pleased to go over concepts in detail too. You can read some of the common questions we’ve answered on Ask Garden State (https://gstrustco.com/blog/category/ask-garden-state-trust/), and let us know topics or areas you might like more information on.
At Garden State Trust Company, we believe that our best client is an educated client. It doesn’t hurt that educated clients understand and appreciate the expertise and experience we bring to the table. We can help with a holistic analysis of your assets, creating an investment portfolio tailored to your appetite for risk and time horizon, and letting you know of many of the pitfalls that are commonly experienced along the way. In some cases, the patriarch or matriarch is already financially literate, but not sure how to get the younger generation up to speed. We can help lead a family meeting, providing backup and answering questions as they come up. We look forward to being your resource.
TIP 2 Traditional vs. Roth IRAs
Most people consider retirement planning and estate planning two separate areas within the realm of wealth management. For the most part, they are correct. However, there is some overlap, and additional planning should be considered for inherited retirement accounts that have special rules applied to them. Those rules could affect the retirement plans of the beneficiaries. The rules have become even more complicated when the IRS proposed regulations under the SECURE Act in February.
Read more about it in our latest blogpost, Another Roth IRA Advantage: https://gstrustco.com/blog/2022/04/08/another-roth-ira-advantage/
TIP 3 Charitable Giving
Americans are among the most philanthropic on the planet, and people and companies are stepping up every year. The contributions to COVID relief after the pandemic hit were remarkable, and the recent efforts to support Ukrainian humanitarian efforts has been extraordinary too. From individual giving, to unexpected campaigns and sources such as Epic Games raising over $100 million dollars (https://www.pcworld.com/article/627617/epic-and-fortnite-players-donate-100-million-to-ukraine.html/) from the video game Fortnite’s players in a limited-time campaign to be donated to five charities.
When a family is considering larger charitable gifts, there are planning strategies that can be utilized that benefit both the giver and the recipient, such as creating a charitable remainder trust. One might be able to make a larger gift, with the certainty of lifetime income, and have some additional tax benefits.
We now have a calculator on our website (https://gstrustco.com/charitable-remainder-trust-calculator/) so you can play around with some sample scenarios, and we would be pleased to elaborate.
TIP 4 Aging Accommodations
In Cathy Rowe’s editorial last month “Here’s how New Jersey can help older adults remain in their homes – and in the state” (https://www.nj.com/opinion/2022/03/heres-how-new-jersey-can-help-older-adults-remain-in-their-homes-and-in-the-state-l-opinion.html ), initiatives are discussed that could help seniors stay in their homes. The vast majority of people wish to stay in their homes as long as possible, and beyond public initiatives Cathy suggests older individuals take three steps early: Educate yourself on local options, plan for multiple scenarios, and plan ahead financially.
Being prepared and planning ahead can be a big difference. At Garden State Trust Company, we can help with those three steps. We are familiar with the difficulties of aging, and go the extra mile to provide lifestyle management services (https://gstrustco.com/blog/2021/06/04/lifestyle-management-whats-that/). We want our clients to know and understand the options available, so they can want to make choices, instead of being forced to decide. Let us know if you’d like to know more.