Stay up to date with our latest news and articles 

Main Office:

151 Kalmus Drive, Suite C-150 

Costa Mesa, CA 92626 
(714) 850-0534 

(714) 850-0934 FAX  

  • Wix Facebook page
  • LinkedIn App Icon
  • Wix Twitter page

Desert Office:

77-564 Country Club Drive #150

Palm Desert, CA 92211

(760) 350-5049

The information in this website is for U.S. residents only. GW Financial, Inc. described in this website is registered only in the United States and the information on this website does not constitute an offer to sell, or a solicitation of an offer to purchase funds either in the United States or to persons outside of the United States. 

 

Content on planretire.com  is protected by applicable copyright laws. No permission is granted to copy, distribute, modify, post or frame any text, graphics, software code, user interface design or logos.

 

ALL CONTENT ON planretire.com IS SUBJECT TO APPLICABLE STATUTES AND REGULATIONS, FURNISHED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT.

 

An investment adviser or IA rep may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if they are excluded or exempted from the state's investment adviser or IA rep requirements, as the case may be. Follow-up or individualized responses to consumers in a particular state by an investment adviser or IA rep that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be, shall not be made without first complying with the state's investment adviser or IA rep requirements, or pursuant to an applicable state exemption or exclusion.

 

For information concerning the licensure status or disciplinary history of an investment adviser or IA rep,

a consumer should contact his or her stated securities law administrator.

© Copyright 2019 GW Financial, Inc. All rights reserved.

Privacy Policy

Plan Ahead for Gift Giving

March 28, 2016

People may think of holidays and birthdays as the major gift-giving occasions. But there are events that occur throughout the year that call for the exchange or giving of gifts. Here are some tips to help you save and plan for the financial implications of gift giving.

 

 


Special occasions often call for gift giving: a graduation in May, a wedding in June, an anniversary in July, and birthdays throughout the year. Each event seems to sneak up on us -- and our budgets. Retailers plan for holidays and seasonal sales, so why not do a little gift planning of your own?


Here are a few tips for your planning list:

  • Save now. Gift buying will seem more manageable if you've been saving for it a little at a time. Whether you set up a formal gift account and contribute to it regularly or just stash away a few extra dollars here and there, it's good to accumulate cash that is earmarked for gift giving.

  • Put a cap on spending. Work out a gift-giving budget for the year that includes a comfortable spending limit as well as a detailed list of individual gifts with spending caps for each. Then stick to it.

  • Avoid credit traps. If you must charge your purchases, put them on your bank credit card. Department store cards typically charge a much higher interest rate. And make sure you watch out for the "buy now, pay later" offers. Although tempting at the time, it is very easy to forget about a DVD recorder you bought in November if the first payment isn't due until March.

  • Two for one. When you find a great deal on something nice, buy two -- one for yourself and one to give away. Then, when a birthday or other unexpected event pops up and catches you by surprise, you'll be prepared with a gift. Importantly, you will have avoided the last-minute (and often expensive) rush to buy something quickly.

  • Take advantage of post-holiday sales. In Canada, the United Kingdom, and other Commonwealth countries they call it Boxing Day, but here it's just the day after Christmas. For those truly die-hard shoppers, it can be the best shopping day of the year. Stores slash already reduced prices even more to make way for spring inventories.


Gift giving is one of the easiest ways to overspend. But if you do a little planning before you shop, you'll approach each occasion with your budget and generosity intact.


Give the Gift That Lasts a Lifetime
If you'd like to give a child money but want to do something more lasting than writing a check, consider setting up a custodial account under either the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act (UGMA/UTMA) through a bank or investment company.


Custodial accounts can help finance a child's future and lessen the giver's tax burden. Here are a few details you should be aware of.


The UGMA/UTMA Facts:

  • There are no income limits affecting eligibility to fund a custodial account.

  • You can gift away up to $14,000 per child, each year ($28,000 for married couples) to as many children as you like without owing gift taxes. Beyond those amounts, gifts may be subject to federal gift taxes.

  • Gifts made to UGMA/UTMA accounts are considered irrevocable; once the child reaches legal age (18 or 21, depending on the state), he or she gains full control over the assets.

  • Since custodial accounts belong to the child, account assets may decrease the amount of financial aid a child can receive.


Beware the "Kiddie Tax"
Tax rules affecting UTMA/UGMA accounts bear careful consideration. Under the so-called "Kiddie Tax" rules, a child's investment income over a certain level is taxed at his or her parents' rate rather than the child's lower rate (typically 5% for most children). Prior to 2006, the Kiddie Tax rule applied only to children younger than 14. But the age limit has risen twice in the past few years.


Now the Kiddie Tax includes dependents up to the age of 19 and those up to the age of 24 who are full-time students. Any investment income earned in excess of $2,000 will be taxed at the parents' higher tax rate.

 

This communication is not intended to be tax advice and should not be treated as such. Each individual's tax situation is different. You should contact your tax professional to discuss your personal situation.


Required Attribution

Because of the possibility of human or mechanical error by Wealth Management Systems Inc. or its sources, neither Wealth Management Systems Inc. nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall Wealth Management Systems Inc. be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content. 
© 2015 Wealth Management Systems Inc. All rights reserved.

 

Please reload

September 10, 2019

August 5, 2019

Please reload

Recent Posts
Categories