David G. Niggel, ChFC®'s Answers and Guides

A check made out to the qualified charitable organization with a receipt from them is the cleanest way to ensure your charitable tax deduction is the amount donated. Giving away an automobile to a charity was once straightforward. You could claim the old car's fair market value, that is, the amount a willing buyer would pay a willing seller for the product. Typically, you'd refer to auto valuation services, such as the Kelley Blue Book, to get an idea of the donated car's value, give it to your favorite nonprofit and then drive off with a tax break equal to that valuation amount. No more. Because some taxpayers got greedy, claiming much more than their old autos were worth; lawmakers tightened the rules on how much you can write off for a vehicle donation. Now the precise tax break depends on the donor's claimed value of the gift and how the charity uses the vehicle. In most instances, a taxpayer must take into account a $500 threshold on vehicular gifts. This value amount applies to autos, boats and even airplanes. When the donated vehicle's value (based on credible fair market value analyses) exceeds that amount, claiming the deduction gets more complicated. This valuation ceiling comes into play when a charity sells a donated vehicle. In this case, just how much a taxpayer can deduct depends on the amount the sale nets. For example, you donate your old station wagon that's worth $1,000. Under the old rules, that would be the amount you could deduct. But now, if the charity turns around and sells your donation for $800, your deduction is limited to the lower sales price. The charity must give you substantiation of the Internal Revenue Service-allowed donation amount within 30 days of when you turn your car over to the charity or, if the group sells the auto, within 30 days of the vehicle's sale. By now, you should have gotten word from the charity as to what it did with your old vehicle. If you haven't heard from the charity, give it a call and ask that it send, or resend, you the donation specifics. Plus, you now must include a copy of the acknowledgment with your tax return. Previously, such receipts were generally only kept by the taxpayer in case the IRS questioned a claimed deduction. Say you donated your $1,000 automobile. Instead of immediately selling it, the group used the auto for several. Eventually, the organization decided to sell the vehicle for $800. In this case, you could still claim the full $1,000 fair market value of the auto as long as you received documentation from the food bank on not only the sales price, but also how the auto was used for nonprofit works before the sale. Under the IRS regulations, this is classified as "significant intervening use" of the vehicle that allows the taxpayer to claim the higher deduction. Read more: Donating A Vehicle To Charity | Bankrate.com http://www.bankrate.com/finance/money-guides/donating-a-vehicle-to-charity-1.aspx#ixzz1szG4fTaU

I am with Ryan on this question. If the money does not need to be touched for at least 12 months, I would stick with a bank or credit union CD. If you would need access to the money for deposits on venues, caterers, flowers etc., then a money market would be in order. Money market accounts can give you checks or a debit card in order to use the funds when needed.

Reuben,

Another thing to add to your list is an emergency fund. Most advisors will suggest at least 6 months worth of expenses to be set aside in a cash equivalent account. A recent article that I read, suggested even having an entire year set aside. Job security is not what it used to be and you want to be prepared for those downturns in your income.

As Tony mentioned, a budget will be very important to you as you get started. Even writing down every dollar spent during the month (coffee, soda, etc.) it all adds up.

Good luck, and congrats on getting started at an early age.

Passive investing involves buying and holding market components, whereas an active investor or fund manager tries to pick the next winning stock or time where the market is headed next.

A passive approach offers these major benefits:

1. By holding entire market components, one maximizes the benefits of diversification.
2. By “tilting” the portfolio to riskier or less risky components, the investor can expect to capture the highest market return given his or her risk tolerance.
3. The investor maintains control over his or her own portfolio’s components (by avoiding active funds’ tendency to style drift without the investor’s knowledge).
4. Expenses can be minimized.
5. Tax efficiency can be maximized.

Thus, build a globally diversified portfolio that is adjusted to your risk appetite, rebalance your portfolio within certain parameters and keep on maximizing your 401(k) deduction and company match, if offered. Turn off the news and go outside and play with your children or grandchildren.

Carnish,

A primary beneficiary and contingent beneficiary are an important step for your estate. If your beneficiary is under 18, make sure to consult an attorney. You may need a guardian or trust set up for minors to receive the proceeds as you wish.

If you can go online to the provider website and find the correct place to enter your information, this is good. It may take a little searching, but if it is available, you will find it.

If not, your plan administrator should be a resource. Make an appointment with the plan administrator to fill out the beneficiary forms and get a tutorial about the website for your plan.

While with the administrator, you should go over your asset allocation to make sure your risk tolerances are in sync with your goals and objectives. And maximize your contributions to receive the full company match, if offered.

David

http://www.keywealthpartners.com