"RMDs, QCDs, and Thee: A Guide for Charitable Giving in Retirement"
One of the opportunities to mitigate taxes from RMD’s available to many American Taxpayers* is the Qualified Charitable Distribution (QCD). The following is a qualifications list that lays out many, but not all, of the details. Review your eligibility with a qualified Tax Advisor.
ü Tax-free charitable donations
ü QCD’s do not negatively impact your Standard Deductions amount
ü Eligible IRA owners can donate up to $108,000 to charity in 2025
o You must own a Qualifying IRA and be age 70.5 or older
ü The amount of the donation is excluded from taxable income
ü Other Considerations:
o The contribution must go directly from your IRA Custodian to the qualified Charity
o Be sure to tell your Tax Preparer that you’ve done this.
o If you’re taking RMD’s, send the QCD first, then take the remaining RMD.
o The Charity should give you written correspondence of your QCD.
o The Charity must cash the check in the tax year you want the QCD to occur.
Click on the images below for further information.
Tax planning can be challenging. Consulting a qualified Advisor can increase your opportunity for success. Please reach out if you have any questions about this or any other aspect of your Wealth Management.
Edwin McKnight
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Stocks rallied last week as investors reacted positively to a handful of better-than-expected corporate earnings reports and developments out of Washington, D.C.
The Standard & Poor’s 500 Index gained 1.74 percent, while the Nasdaq Composite Index added 1.65 percent. The Dow Jones Industrial Average rose 2.15 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 3.03 percent.1,2
Flurry of News
Markets surged over the first three trading days as investors cheered a flurry of new policy announcements and executive orders following Monday’s inauguration. For example, investors responded to news that the White House trade team is considering taking a softer stance on tariffs.3
It was also a good week for Q4 company reports and other upbeat corporate news.4
Markets leveled off Friday as investors were disappointed that existing home sales fell to a 30-year low. But for the week, the Nasdaq had closed above 20,000 on two of the four trading days, and the S&P 500 closed above 6,000 at every session.5
International Revenue Risk
With 49% of the Magnificent 7’s revenue coming from international sales, compared to just 26% for the S&P 493 and 21% for the Russell 2000, we note that today's largest US companies may have a greater exposure to potential new tariffs than the average company. Investors concerned with tariff uncertainty might consider increasing exposure to small and mid-cap companies with higher domestic sales which may provide insulation to US protectionist policy, in our view.
Article from gsam.com: International Revenue Risk
Source: YCharts.com, January 25, 2025. Weekly performance is measured from Friday, January 17, to Friday, January 24. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
A Look Forward
The stock market is a discounting mechanism, meaning today’s stock prices reflect all available information, including present and potential future events. And for the most part, the markets reacted positively to the news coming out of Washington last week. Some news spurred broad-based market moves, while other news had more sector-specific impacts.6
For example, on Thursday, markets reacted positively to news that the White House believes interest rates were too high and want to see rates trend lower. The Fed’s first scheduled two-day policy meeting ends on Wednesday, so investors may be looking to see if Fed Chair Jerome Powell addresses the new administration's concerns.
This Week: Key Economic Data
Monday: New Home Sales.
Tuesday: Durable Goods. Consumer Confidence. Case-Shiller Home Price Index. Federal Open Market Committee (FOMC) meeting—Day 1.
Wednesday: FOMC meeting—Day 2. U.S. Trade Balance in Goods. Retail and Wholesale Inventories. FOMC announcement and Fed Chair Powell press conference.
Thursday: Gross Domestic Product (GDP). Pending Home Sales. Weekly Jobless Claims.
Friday: Personal Consumption & Expenditures (PCE) Index. Employment Cost Index. Fed Governor Michelle Bowman speaks.
Source: Investors Business Daily - Econoday economic calendar; January 24, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Monday: AT&T Inc. (T)
Tuesday: Starbucks Corporation (SBUX), The Boeing Company (BA), RTX Corporation (RTX), Stryker Corporation (SYK), Lockheed Martin Corporation (LMT), General Motors Company (GM)
Wednesday: Microsoft Corporation (MSFT), Meta Platforms, Inc. (META), Tesla, Inc. (TSLA), T-Mobile US, Inc. (TMUS), ServiceNow, Inc. (NOW), International Business Machines Corporation (IBM), Automatic Data Processing, Inc. (ADP)
Thursday: Apple Inc. (AAPL), Visa Inc. (V), Mastercard Incorporated (MA), Thermo Fisher Scientific Inc. (TMO), Caterpillar Inc. (CAT), Comcast Corporation (CMCSA), The Blackstone Group (BS), United Parcel Service, Inc. (UPS), Marsh & McLennan Companies, Inc. (MMC), Intel Corporation (INTC)
Friday: Exxon Mobil Corporation (XOM), AbbVie (ABBV), Chevron Corporation (CVX)
Source: Zacks,January 24, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
“In a sense, one can never read the book that the author originally wrote, and one can never read the same book twice."
– Edmund Wilson
The Timeless Charm of Groundhog Day
Groundhog Day, celebrated every February 2nd, blends ancient Celtic traditions, German folklore, and American charm. Originating from the belief that animals could predict the arrival of spring, the holiday stems from Candlemas Day in Europe, where a sunny day meant winter would persist. German settlers in Pennsylvania adopted the groundhog as their weather prophet, replacing the hedgehog of old-world lore. The most famous celebration occurs in Punxsutawney, where the legendary "Punxsutawney Phil" emerges from his burrow to forecast six more weeks of winter or early spring. With its mix of tradition, community festivities, and humor, Groundhog Day has become a playful nod to humanity’s connection to nature and the changing seasons.
Cold weather can have significant effects on the body, particularly cardiovascular health. Exposure to cold temperatures causes blood vessels to constrict, leading to increased blood pressure and a higher risk of heart attack or stroke. Additionally, cold weather can thicken the blood, further elevating these risks. Individuals with existing heart conditions should be especially cautious during winter months.
To protect yourself during cold weather:
- Dress warmly: Wear layers of clothing to maintain body heat and prevent hypothermia.
- Stay active: Regular physical activity helps maintain cardiovascular health but avoid overexertion, especially in cold conditions.
- Monitor your health: Be vigilant for symptoms like chest pain or shortness of breath, and seek medical attention if they occur.
- Limit alcohol consumption: Alcohol can cause body heat loss and mask the symptoms of hypothermia.
- Stay informed: Keep abreast of weather forecasts and avoid exposure during extreme cold spells.
By taking these precautions, you can reduce the adverse effects of cold weather on your body and maintain better health throughout the winter.
Clickheretoreadthefullarticle.
Electronic Filing Options for Military Families
The Internal Revenue Service (IRS) offers several online resources for military members and their families. Some of these resources include:
- IRS Free File. This program offers online tax preparation, electronic filing, and direct deposit of refunds. There is no charge.
- Members of the military and their families with incomes below $72,000 can choose from any of the Free File tax software companies the IRS has compiled.
- Free File Fillable Forms are available for those with income above $72,000.
- Free File can help taxpayers determine their earned income tax credit, child and dependent care credit, and Recovery Rebate Credit.
- Miltax is another free tax resource available for the military community offered through the Department of Defense.
This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.
Tip adapted fromIRS7
Easy Herbs to Grow Inside
Even if you don’t have a green thumb, these herbs are easy to grow inside. Herbs add a little greenery to your home and are healthy and delicious. A win-win!
Here are some of the easiest herbs to grow inside:
- Basil
- Bay leaves
- Chives
- Mint
- Oregano
- Parsley
- Rosemary
- Thyme
When planning your indoor herb garden, you may need to separate the herbs into individual containers because each has different watering schedules and sunlight requirements. For example, thyme, rosemary, and oregano enjoy much less water than basil. Once you know a bit about the care of each herb, your garden will thank you.
Tip adapted from Gardeners.com8
Banana Nice Cream with Dark Chocolate Drizzle
Ingredients(Serves 4)
- Nice Cream Base:
- 4 ripe bananas, peeled, sliced, and frozen
- 2–3 tablespoons unsweetened almond milk (or any milk of choice)
- 1 teaspoon pure vanilla extract
- Pinch of sea salt
- Dark Chocolate Drizzle:
- 1/4 cup dark chocolate chips (70% cocoa or higher)
- 1 teaspoon coconut oil
- Optional Toppings:
- Chopped nuts (e.g., almonds, pecans, or walnuts)
- Fresh berries (e.g., raspberries or strawberries)
- Unsweetened coconut flakes
- Cacao nibs
Joe showed up at a business meeting fresh and alert, even though he had not slept a wink during any of the past four days. Why wasn’t he tired?
Last week’s riddle: You can make it and read about it today; many classes are taught in it, but it is not part of the future. What is it?Answer: History.
Molokini Crater
Maui County, Hawaii, United States
Footnotes and Sources
1. The Wall Street Journal, January 24, 2025
2. Investing.com, January 24, 2025
3. MarketWatch.com, January 21, 2025
4. CNBC.com, January 22, 2025
5. CNBC.com, January 24, 2025
6. The Wall Street Journal, January 21, 2025
7. IRS.gov, June 10, 2024
8. Gardeners.com, October 3, 2024