GeneralThe WorryFree Retirement® Blog

Gifting in the 21st Century!

By December 15, 2021 No Comments

The stock market is constantly changing… A rollercoaster ride that for decades has made Savers sick to their stomachs. Can you afford to keep risking your money – or – the money you plan to leave to your beneficiaries? Would you rather see your children and grandchildren use and enjoy this money instead of watching it bounce around in a fickle stock market? Let’s take a look at how the ‘Financial World’ couldn’t care less about teaching you how to gift money.

Unfortunately, many financial advisors only care about what investment products they can convince you to buy. They care very little about what you do with your money after you’ve signed on the dotted line.

Take, for instance, an agent selling an annuity – after they make their commission, they have no legal obligation to service what they sold. This is why it is so important to get a second opinion from a Fiduciary to ensure you REALLY know what you’re getting into. As an investment firm that helps Savers understand both the investment world (our Charles Schwab platform) and the insurance world (annuities, life/long-term care, etc.) – our personalized, written GamePlans give Savers the education of how the products work, but also a plan to use and enjoy the money without the fear of running out.

People worry an awful lot about money, when in reality, there are only three things you can do with it: Save It, Spend It or Give It Away! There is an old saying when it comes to giving and receiving money – “don’t look a gift horse in the mouth.” Meaning, when someone is offering to give you money, you take it!

Let’s take a look at a couple of your ‘Gift Horses’ in the Financial World:


Your 401(k) or other pre-tax Retirement Savings:

The money sitting in your 401(k) (other than Uncle Sam’s cut) is YOUR money. However, many Savers keep on riding the rollercoaster even after the age they can move that money elsewhere. If you are age 59.5, retired or approaching retirement, taking this risk in the market can leave you in a world of hurt if there is another crash like we saw in 2008 or even during the pandemic.

Current Income Tax Rates:

While most Savers would agree that taxes are almost the opposite of a gift, the majority of Savers are seeing income taxes at historic lows. Under current laws, the government is trying to give Savers a break on taxes! Under current Trump tax law, most Savers are in the lowest tax bracket they will ever be in. This is a time to take advantage of tax efficient strategies like roth conversions OR simply using and enjoying more of your money now!

In reality, if you don’t find a way to use and enjoy your money – someone will do it for you! We see this often with folks that choose to wait too long… nursing homes (long-term care costs) the Government (higher taxes for your beneficiaries), Wallstreet (fees and market risk), Banks (interest), or Insurance Companies (increasing premiums).

If you’re thinking that you’re ready to start using and enjoying more of your money, why not consider gifting? Whether it’s gifting yourself the ability to do what you’d love to do with your own money, or truly giving money away! Let’s take a look at how you can put more of your hard-earned money in your pocket or in the hands of who you’d like to see use and enjoy it. Kids, grandkids, church or charity – who would you like to see make the most out of your money?


Click the button below to learn how you can give your money to the ones that you love!


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