T his Week from Jesse Hurst
Jesse W. Hurst, II
CFP® CERTIFIED FINANCIAL PLANNER™
AIF ® ACCREDITED INVESTMENT FIDUCIARY
 
How Do I Make Smart Charitable Giving Choices?

For the clients of Impel Wealth Management, there were many good things that came as a result of the 2017 tax law changes. The tax code was simplified, eliminating many deductions and loopholes. The standard deduction was doubled for most individuals and families. And, once you got above the lowest tax bracket, rates generally dropped by 3% for most clients.

However, one unintended victim of tax simplification has been 501(c)(3) charitable organizations that rely on donations for their philanthropic operations. Prior to the new tax law being passed, approximately 46.5 million taxpayers itemized deductions. Only 18 million taxpayers itemized deductions in calendar year 2018 according to estimates from the nonpartisan Joint Committee on Taxation. This means that approximately 88% of tax filers took the standard deduction, meaning that they cannot write off their charitable donations.

Due to the fact that many more people are no longer itemizing, people are less incentivized to make charitable gifts. According to a report released in June by the organization Giving USA, individual donations fell by approximately 3.4%, adjusted for inflation, in the first year after the new tax act. We now find that many of the organizations that our clients care about are being funded at a lower level. This includes churches and faith-based schools, but it also means many organizations that serve the needs of those less fortunate.

There are a number of strategies and options for helping our clients maximize their charitable giving intentions. These include Qualified Charitable Distributions from retirement accounts for clients over the age of 70 1/2 that have to take required minimum distributions. There is also an opportunity to bunch donations every second or third year so that you can occasionally itemize. They can also include gifts of appreciated assets, typically stocks or real estate. This can also mean considering the use of a Donor Advised Fund that would allow you to make a larger gifts from time to time, possibly every 2 to 5 years, and still be able to distribute the assets to the charities you care about on an annual basis.

The charitable giving landscape has gotten more complex. This means that you need to be more intentional in looking at strategies and planning ahead. This is where the team at Impel Wealth Management comes in. We stand ready to have meaningful conversations with you about how you can keep "Moving Life Forward" for you and the charitable organizations you care about. Please let us know how we can help.


Jesse


Weekly Market Commentary
July 22 , 2019
 

The Markets
 
Did last week mark the start of a new policy for the Federal Reserve?
 
The U.S. Federal Reserve has a reputation for providing little transparency about the timing and direction of potential rate changes. That reputation was challenged last week.
 
In back-to-back speeches, two of the three most influential members of the Federal Open Market Committee (FOMC) - Federal Reserve Vice-Chairman Richard Clarida and Fed Bank of New York President John Williams - made a case for lowering the Fed funds rate to support economic growth, reported Financial Times.
 
When asked about Fed officials' comments, a currency strategist cited by Financial Times said, "...the communication we received seemed in many ways to be a coordinated attempt to signal the market given its timing and context..."
 
The magnitude of the change remains a mystery. Barron's reported debate remains over whether the Fed will cut rates by 0.25 or 0.50 of a percentage point. On Saturday, the CME FedWatch Tool reported a 77.5 percent probability of the former.
 
There was some positive economic data last week, including an uptick in U.S. consumer spending and positive manufacturing data from the Philadelphia Fed's July survey, reported Barron's. However, the Conference Board Leading Economic Index® declined, indicating growth may remain slow during the second half of the year. The index combines 10 individual leading indicators in an effort to reveal patterns in economic data.
 
The Standard & Poor's 500 Index was down 1.2 percent last week.


Data as of 7/19/19
1-Week
Y-T-D
1-Year
3-Year
5-Year
10-Year
Standard & Poor's 500 (Domestic Stocks)
-1.2%
18.7%
6.1%
11.2%
8.6%
12.1%
Dow Jones Global ex-U.S.
0.0
11.5
-2.2
5.7
0.1
3.9
10-year Treasury Note (Yield Only)
2.1
NA
2.9
1.6
2.5
3.6
Gold (per ounce)
2.3
12.3
18.3
2.7
1.9
4.2
Bloomberg Commodity Index
-2.0
3.5
-4.4
-2.5
-9.3
-4.2
S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance, MarketWatch, djindexes.com, London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

How hot was it last week?
If you were in a region of the United States that didn't experience some of the hottest and most humid weather in years over the weekend, count your lucky stars.
 
The Washington Post reported, "The heat wave...comes in the midst of what may turn out to be the hottest month Earth has recorded since instrument records began in the late 19th century..."
 
So, how hot was it?
 
It was so hot:
 
  • The National Weather Service staff in Nebraska attempted to bake biscuits inside a car, reported UPI. The biscuits didn't bake through, but the tops were crispy. The temperature in the pan reached 185 degrees Fahrenheit.
  • Paved roads were melting in France and Germany. Deteriorating road conditions caused Germany to impose speed limits on the Autobahn, which usually has no limits at all, reported Bloomberg.
  • Bicycles melted and police were called to restore order at public pools in Berlin, Germany, according to tweets cited by Buzzfeed.
 
The U.S. heat event is expected to end by Tuesday. Forecasters were warning the heat index could rise as high as 115 degrees. If you are in an area afflicted by extreme heat, the National Weather Service advises staying out of the sun, remaining in air-conditioned places, drinking plenty of water, and checking on older or disabled friends and relatives.


Weekly Focus - Think About It

"Hold yourself responsible for a higher standard than anybody else expects of you. Never excuse yourself. Never pity yourself. Be a hard master to yourself - and be lenient to everybody else."
                                                       --Henry Ward Beecher, American minister and speaker



Best regards, 
 
Jesse Hurst CFP ®, AIF®
Investment Advisor Representative
 
Impel Wealth Management 
 
P.S.  Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added.
  
Securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC, a broker/dealer and a Registered Investment Adviser. Cetera is under separate ownership from any other named entity.

* These views are those of Carson Coaching, and not the presenting Representative or the Representative's Broker/Dealer, and should not be construed as investment advice.
* This newsletter was prepared by Carson Coaching. Carson Coaching is not affiliated with the named broker/dealer.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as "The Dow," is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* You cannot invest directly in an index.
* Stock investing involves risk including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.

*To unsubscribe from the Impel Wealth Management please reply to this e-mail with "Unsubscribe" in the subject line, or write us at 2006 4th Street, Cuyahoga Falls, OH 44221.
   
 
Sources:


  
Securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC, a broker/dealer and a Registered Investment Adviser. Cetera is under separate ownership from any other named entity. Confidential: This email and any files transmitted with it are confidential and are intended solely for the use of the individual or entity to whom this email is addressed. If you are not one of the named recipient(s) or otherwise have reason to believe that you have received this message in error, please notify the sender and delete this message immediately from your computer. Any other use, retention, dissemination, forward, printing, or copying of this message is strictly prohibited.
 

Is there something we can help you with?  Please call me at 330.800.0182 or email me directly at [email protected].

Impel Wealth Management 
2006 4th Street, Cuyahoga Falls, OH 44221    
P: 330.800.0182    TF: 844.422.5550    F: 234.312.0460