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. federal penalty tax. $328 billion (93%) in college savings plans and $25 billion Benefits Restricted ability to change investment (7%) in prepaid tuition plans. 529 college savings plans offer a unique options on existing contributions. When you Source: Strategic Insight, 529 combination of features that are hard to beat open a 529 college savings plan account, Data Highlights, 2Q 2019 when it comes to saving for college, so it's no you're limited to the investment options offered surprise why assets in these plans have grown by the plan. Most plans offer a range of static steadily since their creation over 20 years ago. and age-based portfolios (where the underlying Note: Investors should investments automatically become more consider the investment Eligibility. People of all income levels can conservative as the beneficiary gets closer to objectives, risks, charges, and contribute to a 529 plan — there are no college) with different levels of risk, fees, and expenses associated with 529 restrictions based on income (unlike Coverdell management objectives. If you're unhappy with plans before investing. More accounts, U.S. savings bonds, and Roth IRAs). information is available in each the market performance of the option(s) you've issuer's official statement and Ease of opening and managing account. It's chosen, you can generally change the applicable prospectuses, which relatively easy to open a 529 account, set up investment options for your future contributions contain this and other automatic monthly contributions, and manage at any time. But under federal law, you can information about the your account online. For example, you can change the options for your existing investment options, underlying increase or decrease the amount and contributions only twice per year. This rule may investments, and investment frequency of your contributions (e.g., monthly, restrict your ability to respond to changing company, and should be read quarterly), change the beneficiary, change your market conditions, so you'll need to consider carefully before investing. Also consider whether your state investment options, and track your investment any investment changes carefully. offers a 529 plan that provides returns and overall progress online with the Getting started residents with favorable state click of a mouse. 529 college savings plans are offered by tax benefits and other benefits, Contributions. 529 plans have high lifetime individual states (but managed by financial such as financial aid, contribution limits, generally $350,000 and up. scholarship funds, and institutions selected by the state), and you can (529 plans are offered by individual states, and protection from creditors. As join any state's plan. To open an account, the exact limit depends on the state.) Also, 529 with other investments, there select a plan and complete an application, plans offer a unique gifting feature that allows are generally fees and where you will name an account owner lump-sum gifts up to five times the annual gift expenses associated with (typically a parent or grandparent) and participation in a 529 plan. tax exclusion — in 2020, this amount is up to beneficiary (there can be only one); choose There is also the risk that the $75,000 for individual gifts and up to $150,000 your investment options; and set up automatic investments may lose money for joint gifts — with the potential to avoid gift tax contributions if you choose. You are then ready or not perform well enough to if certain requirements are met. This can be a to go. It's common to open an account with your cover college costs as very useful estate planning tool for anticipated. own state's 529 plan, but there may be reasons grandparents who want to help pay for their to consider another state's plan; for example, grandchildren's college education in a the reputation of the financial institution tax-efficient manner. managing the plan, the plan's investment Tax benefits. The main benefit of 529 plans is options, historical investment performance, the tax treatment of contributions. First, as you fees, customer service, website usability, and save money in a 529 college savings plan so on. You can research state plans at the (hopefully every month!), any earnings are tax College Savings Plans Network. deferred, which means you don't pay taxes on 1 College Board, Trends in College Pricing, the earnings each year as you would with a 2014-2018 regular investment account. Then, at college

Page 3 of 4, see disclaimer on final page RBC Wealth Management Should I sign up for an identity theft protection service? Cirque Investment Group Unfortunately, data breaches also provide reimbursement for out-of-pocket 1801 California Street are now normal, everyday expenses directly associated with identity theft Suite 3900 occurrences in our society. As (e.g., postage, notary fees) and any funds a result, many companies are stolen as a result of the identity theft (up to plan Denver, CO offering services to help you limits). Identity theft protection services usually 303-595-1156 protect your personal information. If you want charge a monthly fee. Entry-level plans that www.cirqueinvestmentgroup.com an extra layer of protection, an identity theft provide basic protection (e.g., Social Security protection service is a good option. However, number and credit alerts) can cost as little as the term "identity theft protection service" can $10 a month, while plans that offer more be misleading. The reality is that no one service advanced features (e.g., investment account can safeguard all of your personal information monitoring) will cost more. from identity theft. What most of these Keep in mind there are steps you can take on companies actually provide are identity theft your own to help protect yourself against Investment and insurance products offered through monitoring and recovery services. RBC Wealth Management are not insured by the FDIC identity theft, such as: or any other federal government agency, are not A monitoring service will watch for signs that an deposits or other obligations of, or guaranteed by, a • Check your credit report at least once a year bank or any bank affiliate, and are subject to identity thief may be using your personal for errors investment risks, including possible loss of the information. This typically includes tracking your principal amount invested. The information contained herein is based on sources credit reports for suspicious activity and alerting • Periodically review your bank and debit/credit believed to be reliable, but its accuracy cannot be card accounts for suspicious charges/activity guaranteed. Professional Trustee Services are offered to you whenever your personal information (e.g., RBC Wealth Management clients by different entities who Social Security number) is being used. The • Obtain a fraud alert or credit freeze if may serve as trustee. RBC Wealth Management will receive compensation in connection with offering these recovery portion of the service usually helps necessary services. Neither RBC Wealth Management nor its you deal with the consequences of identity Financial Advisors are able to serve as trustee. RBC • Have strong passwords, use two-step Wealth Management does not provide tax or legal advice. theft. This often involves working with a case authentication, minimize information sharing, All decisions regarding the tax or legal implications of your manager to help resolve identity theft issues investments should be made in connection with your tax and be careful when shopping online or legal advisor. RBC Wealth Management is not a (e.g., dealing with creditors or placing a freeze mortgage lender or broker. Nothing herein should be on your credit report). And depending on the construed as an offer or commitment to lend. Any calculations are provided as educational tools, and are not level of protection you choose, the service may intended to provide investment advice or serve as a financial plan. The result of any calculation performed is hypothetical and does not assume the effect of fees, commissions, tax rates, or changes in interest rates or the rate of inflation, and is not intended to predict or guarantee the actual results of any investment product or strategy. These results depend wholly upon the information provided by you and the assumptions utilized within. In selecting an anticipated investment return, you should consider factors affecting the potential return, such as investment objectives and risk tolerance. The articles and opinions in this advertisement, prepared by Broadridge Investor Communication Services, Inc., are for general information only and are not intended to provide specific advice or recommendations for any individual.

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