October 24, 2007 / White Oaks Wealth Advisors

Giving Back

Giving Back Is A Top Priority
An unfair portrayal of wealthy individuals of being greedy and selfish is largely undeserved. One only needs to look around at all the parks, museums, schools and many other projects in our communities to recognize that many can and do give back. Our experience in working with clients in wealth management for many years is that the wealth can and do often give generously. Wisebread’s post today describes the benefits of sharing the benefits of good fortune.

Recently I had the opportunity to work on a Habitat For Humantiy site for a day. This group of individuals was there because they are CEO’s and top leaders in their organization and the day was described as a CEO Build. Most were with large corporations that would be recognized by most people. They were there and worked the site and I’m sure most opened their checkbooks too. Personally I was tired at the end of the day. Not used to swinging a hammer much in this work but I felt great that I was able to help.
Often the issue of legacy comes up when discussing charitable interests in wealth management planning. How can I continue support for organizations that I feel are doing great work and are consistent with my values? How will this affect my wealth strategy? What tools are available?

There are a number of tools and techniques that are available to further your legacy and may add significant benefits to your overall wealth management strategy.

1. Donor Advised Funds are often sponsored by firms like Fidelity and Schwab and in many cases community foundations. This is a good strategy for smaller amounts of money and where the intended done is recognized widely as a charitable organization.

2. Private Foundations can be established to meet the broader and more specific needs you might have. Due to the cost of establishment and ongoing maintenance a larger sum of money, $1,000,000 or more, is most suitable. There are some organizations that provide outsourced solutions for the smaller scale of the above funds. Private Foundations can reach a broader audience of charitable organizations and be more tailored to your objectives. Both Donor Advised Funds and Private Foundations can be excellent vehicles for multiple generations to unite and develop sound values around money.

3. Charitable Remainder Trusts are vehicles wherein you can gift a sum to charity, receive income for a number of years and then the balance can be left to the charity of your choice. The IRS has specific rules on the setting up of these trusts but it can be a great vehicle.

4. Charitable Lead Trusts are the opposite of a Charitable Remainder Trust. The income goes to the charity for a number of years and then the remaining balance comes back. These are often used in conjunction with other gifts to family members as the remaining interest may be discounted for gift value purposes.

Decisions that revolve around lifetime legacies are often complicated and involve a reasonable amount of time to put the best option in place. Issues with regards to your individual tax planning, wealth transfer and personal financial security will all be part of a sound and successful strategy.

The foregoing content reflects the opinions of White Oaks Wealth Advisors and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns.

Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.

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Investment advisory services provided by White Oaks Wealth Advisors, Inc. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.