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The Value of Appreciating Assets

What are Appreciating Assets?

What Do You Do With Appreciating Assets?

An Example of Charitable Giving With Appreciating Assets

Interested In Learning More?

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Categories”}},{“type”:”list_item”,”source”:{“query”:{“name”:”categories.customCategories”,”arguments”:{“id”:0,”offset”:0,”limit”:10,”order”:”term_order”,”order_direction”:”ASC”}},”props”:{“content”:{“name”:”name”,”filters”:{“search”:””}},”link”:{“name”:”link”,”filters”:{“search”:””}}}}}],”name”:”Blog Category List”}]},{“name”:””,”type”:”column”,”props”:{“image_position”:”center-center”,”media_overlay_gradient”:””,”width_small”:”2-3″},”children”:[{“type”:”headline”,”props”:{“title_element”:”h1″,”content”:”The Value of Appreciating Assets”},”source”:{“query”:{“name”:””},”props”:{“_condition”:{“filters”:{“condition”:”!!”},”name”:”title”}}}},{“name”:””,”type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

It’s crazy to see your childhood action figure toys and \”uncool\” 80’s sneakers selling on eBay for thousands of dollars. Don’t you wish you never tossed them?\n

\”Vintage\” items have significantly increased in value over the years, as trends reemerge and once everyday items become collectibles. But for every mint-condition Teddy Ruxpin selling for hundreds on eBay, there is a complete set of 1989 Topps baseball cards that are worth a fraction of what we imagined when we saved allowance money for half the summer. How did we not see Upper Deck coming? Vintage items are fun, but they are an unreliable investment.\u00a0\u00a0\n

That is why we love appreciating assets. \n

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Appreciating assets are investments whose value increases over time. Common appreciating assets include real estate, stocks, bonds, private equity, and publicly traded securities.\u00a0\n

Appreciation occurs in several ways, including changes in supply, demand, or interest rates. For example, if an investor holds several stocks in a company that sees an improvement in financial performance, the value of those stocks increases. If the investor purchased each stock at $400 and the current value is $560, the investor has $160 per stock in appreciated value.\u00a0 “}},{“type”:”headline”,”props”:{“title_element”:”h1″,”content”:”What Do You Do With Appreciating Assets?”,”title_style”:”h2″}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

There are benefits to using appreciating assets for charitable giving. When you donate long-term appreciating assets, such as bonds, stocks, or real estate, you generally won\u2019t pay capital gains like you would if you sold the asset. You can also take an income tax deduction for the total fair market value, up to 30 percent of your adjusted gross income.\u00a0\n

What does this mean? Simply put, you can leverage your most valuable assets to make a more impactful donation to charities and nonprofits. Using this appreciating assets strategy can increase the amount available for these recipients by up to 20%.\n

Do you need guidance in your financial strategy? Schedule a consultation today.”}},{“type”:”headline”,”props”:{“title_element”:”h1″,”content”:”An Example of Charitable Giving With Appreciating Assets”,”title_style”:”h2″}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

Let\u2019s say you purchased shares of stock eight years ago for $60,000. Since then, these shares have ridden the crest of a bull market, tripling in value. So without doing anything, your $60,000 investment is now worth $180,000.\n

If you sold the shares, you would pay capital gains taxes on the sale. In 2020, capital gains on assets held for more than one year are taxed based on your taxable income. For this example let\u2019s assume your rate is 15%. If you sold your $180,000 in shares, you would pay 15% of your $120,000 profit in taxes, which comes to $18,000. As a result, you\u2019d only have $162,000 to donate instead of the entire $180,000.\n

But if you transfer ownership of the shares to the charitable organization, no capital gains taxes are paid. In this situation, the charity receives the total $180,000 gift, and you can still deduct the total values of the stock — not just your initial investment from eight years ago. That means a non-profit you care about has an additional $18,000 to accomplish their mission and you receive significant tax benefits.\n

Be sure to contact the non-profit or organization you want to donate to and make sure that they can accept shares of stock as a charitable gift. For example, a relatively small church may not be familiar with the process to accept stock as a gift. This is something your financial advisor could help you with! “}},{“type”:”headline”,”props”:{“title_element”:”h1″,”content”:”

Interested In Learning More?”,”title_style”:”h2″}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

Using appreciating assets for charitable giving is one of many tax strategies that maximize your philanthropic impact. And while your extensive Beanie Baby collection might not have turned out to be the lucrative investment you hoped for, over time, stocks are a reliable appreciating asset that can help you and the organizations you care about accomplish your goals.\u00a0\n

To learn more about how you can use each of your assets, contact us!\u00a0\n

For guidance in creating a financial plan and investment strategy that aligns with your values and takes full advantage of your giving opportunities, schedule a consultation with one of our financial advisors today!\n

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Past performance may not be representative of future results. \u202fAll investments are subject to loss.\u202f Forecasts regarding the market or economy are subject to a wide range of possible outcomes. \u202fThe views presented in this market update may prove to be inaccurate for a variety of factors.\u202f These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data. \u202fPlease contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.\u202f\u202f\u00a0″,”text_align”:”left”,”text_size”:”small”,”text_color”:”muted”}}]}]}]}],”version”:”2.2.2″} –>