One of the questions we are asked regularly these days is, ‘What about inflation?’ We think the attached article written by Nick Murray gives you in depth inflation data. And if the article gets a bit murky with all the data, just remember: Inflation – That’s Why You Own Equities.
December 2021 Newsletter
Clients & Friends:
One of the questions we are asked regularly these days is, ‘What about inflation?’ We think the attached article written by Nick Murray gives you in depth inflation data. And if the article gets a bit murky with all the data, just remember: Inflation – That’s Why You Own Equities.
Of great interest to me is a tax rule that was allowable last year but did not get much traction until the current tax year. You do have to be charitable (as defined by the IRS) to use it, but if you itemize, there is only your net taxable income to restrain you. Wow! you can give away all of your 2021 taxable income and pay no income taxes for the year. Not likely for many but still a good move for some. If you have already given away $100,000 of your IRA’a required minimum distribution for the year, additional gifts directly made from other assets can be tax deductible. Of course, this rule works for anyone who is itemizing; you need not be IRA withdrawal age.
What is good about this? We live in a world that rewards the exact opposite of what I grew up believing in. I thought it was my job to become financially responsible and able to care for myself and my family. But it is very expensive; I have to pay up to half of my income before I get to take care of myself. The more successful I am, the more the government taxes me. The top 10% of earners pay for almost everything and are criticized for being “rich.”
A gift which is tax deductible in 2021 may allow you and me to sponsor a group that values what we value.
Googins Advisors hopes you enjoy and treasure the upcoming holidays!
Sincerely,
Louise Googins, President, Investment Advisor
Michael Googins, Administrator
Kim Rankin, Accountant
Richard Martin, Investment Advisor
Lynne Goldsmith, Investment Assistant
Brady Peat, UW-Madison Intern
Kyra Meach UW-Madison Intern