Planning for philanthropy in retirement is a thoughtful and admirable endeavor. While the level of philanthropy you can afford during retirement depends on your individual financial situation, here are some considerations to help you address your philanthropic goals:
- Start early: Ideally, begin your charitable planning while you are still working. By coordinating your retirement goals with your charitable goals, you can establish a source of funds to support your philanthropic endeavors during retirement. This may involve setting aside a portion of your income or assets specifically for charitable giving.
- Assess your current and future support: Take stock of the organizations you currently support and determine which ones align with your values and mission. Consider whether you will continue supporting these organizations in retirement and explore new organizations that resonate with your philanthropic interests.
- Verify appropriate use of funds: It's essential to ensure that your donations are used appropriately by the organizations you support. Conduct independent research on charities through reputable websites like Charity Navigator (www.charitynavigator.org). These platforms provide valuable insights into an organization's financial health, transparency, and impact.
- Determine the timing of funding: According to taxfoundation.org Timing is crucial when it comes to maximizing tax benefits. Typically, the best time to take an income tax deduction is during the years when you are still earning income. This is usually 5-10 years before retirement when you may be in higher tax brackets. However, even in retirement, income tax deductions remain important, especially when taking required minimum distributions from individual retirement accounts (IRAs).
- Choose the right philanthropic vehicle: There are various options for structuring your philanthropy, such as direct giving to charities, establishing a Charitable Gift Fund, creating a Private Foundation, or utilizing a Donor-Advised Fund. Each option has its own benefits and considerations. Work with a financial advisor, specifically one experienced in philanthropic planning, who can help you determine the most suitable approach based on your unique goals and circumstances.
Remember, philanthropy in retirement is a personal journey, and it's essential to align your giving with your financial capabilities and long-term goals. If you want to see what you can expect from a high-performance team who is 100% focused on your goals and learn more, schedule an introduction call with the Hoffman Private Wealth Group Below. Together, we can help you create a legacy with meaningful impact!
Meet with a HPWG Advisor Today!
Todd M. Hoffman CFP®, CPM®
Founding Partner
Executive Managing Director
Senior Portfolio Management Director
Wealth Manager
CONTACT:
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