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RBC Wealth Management How to Give Like a Billionaire When You

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RBC Wealth Management How to Give Like a Billionaire When You How to Give Like a Billionaire When You Don't Have Billions to Give RBC Wealth Management Since Bill and Write down why you are giving Melinda Gates and Cirque Investment Group Director and producer George Lucas and his Warren Buffett wife Mellody Hobson joined the Giving Pledge 1801 California Street created the Giving in 2010. Like other members, they wrote a Suite 3900 Pledge in 2010, statement explaining why they wanted to join more than 200 of the Denver, CO and what they intended to accomplish. 303-595-1156 world's wealthiest "My pledge is to the process," Lucas wrote; "as www.cirqueinvestmentgroup.com individuals and couples have long as I have the resources at my disposal, I committed to giving will seek to raise the bar for future generations the majority of their of students of all ages. I am dedicating the wealth to philanthropic or charitable causes. majority of my wealth to improving education."* Although the Giving Pledge only invites Lucas fulfilled part of this pledge by creating the billionaires to join, "it is inspired by the example George Lucas Educational Foundation to set by millions of people at all income levels transform education through innovation. who give generously — and often at great Writing down your own intentions can help personal sacrifice — to make the world a better clarify your philanthropic goals and serve as a place."* reminder of the impact your gift could have. You don't have to be a billionaire to embrace Inspire and learn by going public the spirit of the Giving Pledge: When people come together to give, regardless of wealth, The Giving Pledge hopes to "inspire they can improve the lives of others. conversations, discussions, and action, not only about how much, but also for what purposes/to Decide which causes matter most to what end."* you Even if you normally prefer to keep your Giving Pledge billionaires are a diverse group, charitable work private, being open about the coming from 23 countries and ranging in age causes you support might help inspire others to from their 30s to their 90s. While they're all give back. dedicated to philanthropy, they support many different causes. Other perks of going public include being able to exchange ideas and lessons learned with For example, Giving Pledge member Sara others, and the opportunity to meet people in Blakely pledged to help empower women to your community or around the world who share prosper when she signed the pledge in 2013. your commitment. She has since donated money to build homes for impoverished families and funded Connect generations through giving entrepreneurial programs for girls. A major goal of the Giving Pledge is to One of the newest signers of the Giving Pledge, encourage long-term family giving that will help Robert F. Smith, focuses on causes that make the world a better place for generations to support equality for African Americans. In May come. December 2019 2019, he told graduates of Morehouse College Sharing your passion for helping others with Take This Quiz: The Social Security that he was paying off their student loans via a your children or grandchildren can be especially Retirement Earnings Test grant that is worth an estimated $40 million. rewarding. Setting family goals, choosing For College Savings, 529 Plans Are Hard to What causes are you passionate about? What worthy causes, and volunteering together are Beat are your values? Do you want to make an ways that you can help unite generations and Should I sign up for an identity theft protection impact locally or globally? Aligning the causes make philanthropy part of your family's legacy. service? you support with what's meaningful to you can * To learn more about the Giving Pledge and those Protecting Yourself Against Identity Theft help deepen your long-term commitment to who have signed it, visit givingpledge.org. giving back. Page 1 of 4 See disclaimer on final page Take This Quiz: The Social Security Retirement Earnings Test Can you work and receive Social Security Answers retirement benefits at the same time? Yes, but 1. b. If you have not yet reached full retirement the Social Security Administration (SSA) will age (66 to 67, depending on your year of birth), apply an earnings test. Part or all of your your Social Security retirement benefit may be monthly benefit may be withheld if you earn too reduced if you earn more than a certain annual much. amount. To help avoid surprises, take this quiz to find In 2020, $1 in benefits will be deducted for out what you know — and don't know — about every $2 you earn above $18,240. In the Social Security earnings test rules. calendar year in which you reach your full Questions retirement age, a higher limit applies. In 2020, 1. The retirement earnings test applies only $1 in benefits will be deducted for every $3 you if you are receiving Social Security benefits earn above $48,600. Once you reach full This quiz covers only some and are... retirement age, your earnings will not affect basic rules. For more your Social Security benefit. information about other a. Under age 62 The SSA may withhold benefits as soon as it retirement earnings test rules, b. Under full retirement age visit the Social Security determines that your earnings are on track to Administration website, c. Full retirement age or older surpass the annual limit. The estimated amount ssa.gov. will typically be deducted from your monthly d. Age 70 or older benefit in full, so you might not receive benefits 2. Which of the following types of income for one or more months before they resume. count toward the earnings test? 2. a. Only earned income, such as wages from a. Wages earned as an employee and net an employer and net self-employment income, self-employment income count toward the earnings limit. Unearned b. Pension and retirement plan income income — such as other government benefits, investment earnings, interest, pension and c. Interest and dividends retirement plan distributions, annuities, and d. Both a and b capital gains — doesn't count. e. All of the above 3. b. Benefits that are withheld are not really lost. Your benefit will be recalculated at full 3. Benefits that are withheld are lost forever. retirement age to account for the months a. True benefits were withheld. You'll receive the higher b. False benefit for the rest of your life, so assuming you live long enough, you'll eventually recoup the 4. The earnings test may affect family total amount you previously "lost." members who are receiving which types of benefits? 4. d. Benefits paid to family members (such as your spouse or dependent children) based on a. Disability benefits your earnings record may also be reduced if b. Spousal benefits you're subject to the earnings test. The earnings test does not apply to disability c. Dependent benefits insurance benefits. d. Both b and c 5. a. Many people retire mid-year and have 5. What special rule applies to earnings for already earned more than the earnings limit. So one year, usually the first year you claim in the first year you claim retirement benefits, a Social Security retirement benefits? monthly earnings test may apply, regardless of a. A monthly earnings limit applies to any your annual earnings. earnings after you claim retirement benefits. For example, let's say that you claim benefits at b. Earnings during the first year after you claim age 62 on September 30, 2020 and have retirement benefits can't be counted if you already earned more than the 2020 earnings retired after 40 years of continuous limit of $18,240. Then, you take a part-time job employment. that pays you $1,000 per month for the rest of the year. You'll still receive a Social Security c. Earnings during the first year after you claim benefit for October, November, and December retirement benefits will not reduce your Social because your earnings are less than $1,520, Security benefit if you retired from a the monthly limit that applies in 2020. government job. Page 2 of 4, see disclaimer on final page For College Savings, 529 Plans Are Hard to Beat Raising kids is hard enough, so why not make time, any funds used to pay the beneficiary's things easier for yourself when it comes to qualified education expenses — including tuition, saving for college? Ideally, you want a savings fees, room, board, books, and a computer — are vehicle that doesn't impose arbitrary income completely tax-free at the federal level. This limits on eligibility; lets you contribute a little or means every dollar is available for college. a lot, depending on what else happens to be States generally follow this tax treatment, and going on financially in your life at the moment; many states also offer an income tax deduction lets you set up automatic, recurring for 529 plan contributions. contributions from your checking account so Drawbacks you can put your savings effort on autopilot; and offers the potential to stay ahead of college But 529 plans have some potential drawbacks. inflation, which has been averaging 3% to 4% Tax implications for funds not used for per year.1 Oh, and some tax benefits would be qualified expenses. If you use 529 plans funds 529 plan assets reach $353 really nice, too, so all your available dollars can for any reason other than the beneficiary's billion go to college and not Uncle Sam. Can you find qualified education expenses, earnings are As of June 2019, assets in 529 all of these things in one college savings subject to income tax (at your rate) and a 10% plans reached $353 billion — option? Yes, you can: in a 529 plan.
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