Page 11 - Hobe Sound Reflections - October '23
P. 11

Hobe Sound, Page 11

                    iN your CoMMuNity                                                                      Financial Focus  from page 10
                                                                                                              You have various options. For one thing, if your children
                                                                                                           have earned income, they can contribute to an IRA to help
                                                                                                           fund their retirement – and while you can’t put funds directly
                                                                                                           into their IRAs, you can give them money for that purpose, up
                                                                                                           to the annual contribution limit, which, in 2023, is $6,500, or
                                                                                                           $7,500 for those 50 or older. Also, if you have grandchildren,
                                                                                                           you could contribute to a 529 education savings plan for them.
                                                                                                           A 529 plan can provide tax-free earnings and withdrawals for
                                                                                                           qualified higher education expenses.
                                                                                                              However, even if you don’t think you can afford to make
                                                                                                           cash gifts, you might be able to provide some financial benefits
                                                                                                           in other ways. For example, you could give your children
                                                                                                           shares of stock you’ve owned for several years. If these shares
                                                                                                           had appreciated in value, and you were to sell them yourself,
                                                                                                           and then give the money to your children, you’d have to pay
                                                                                                           the capital gains taxes. By gifting the shares directly to your
                                                                                                           children, you’d avoid these taxes, and while your children
                                                                                                           would have to pay the taxes when they sold the shares, they
                                                                                                           might be in a lower tax bracket than you. And if they didn’t
                                                                                                           need the money right away, they could hold the shares and
                                                                                                           hope that they appreciate further. (Keep in mind that you can
                                                                                                           make financial gifts, including the value of stocks, of up to
                                                                                                           $17,000 per person, per year, to as many people as you want
                                                                                                           without incurring gift taxes.)
                                                                                                              Being cautious about providing financial support to
                                                                                                           your grown children and other family members – and
                                                                                                           being purposeful when you do provide it – isn’t selfish.
                                                                                                           It’s a thoughtful way to protect your own financial
                                                                                                           security and avoid burdening your family – while still
                                                                                                           helping them out when you can.
                                                                                                              This article was written by Edward Jones for use by
                                                                                                           your local Edward Jones Financial Advisor, Edward
                                                                                                           Jones, Member SIPC.
                                                                                                              Edward Jones is a licensed insurance producer in all states
                                                                                                           and Washington, D.C., through Edward D. Jones & Co., L.P.,
                                                                                                           and in California, New Mexico and Massachusetts through
                                                                                                           Edward Jones Insurance Agency of California, L.L.C.; Edward
                                                                                                           Jones Insurance Agency of New Mexico, L.L.C.; and Edward
                                                                                                           Jones Insurance Agency of Massachusetts, L.L.C.
                                                                                                              Edward Jones, its employees and financial advisors cannot
                                                                                                           provide tax advice. You should consult your qualified tax
                                                                                                           advisor regarding your situation.
                                                                                                              Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
                                                                                                           1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
   6   7   8   9   10   11   12