Wealth From Wisdom December 2017

WHICH CHARITY SHOULD I DONATE TO?

little regulatory power over most charitable organizations since they don’t typically pay taxes. As a result, it’s all too easy to be defrauded. “Never give a gift where you didn’t initiate the communication,” advises Tim Meisenheimer, a CERTIFIED FINANCIAL PLANNER™. Calls can be a red flag, as charities who employ telemarketers are much less likely to receive the entirety of your donation. If you’re donating online, he also advises you to check that there’s a “https” at the beginning of the URL, which indicates a secure connection. But the best way to avoid shady scammers is to research the charity before you hand over your cash. One helpful resource is CharityNavigator.org, a charity-screening website where you can scrutinize a charity’s rating, spending habits, category, and much more. When examining a charity, they look for all kinds of red flags, such as if they spend more than one-third of their budget on administrative costs or if they aren’t

Special Circumstances • Car records (Keep until the car is sold) • Insurance policies (Keep for the life of the policy) • Mortgages, deeds, and leases (Keep 6 years beyond the agreement) • Property records and improvement receipts (Keep until property is sold) • Sales receipts (Keep for life of the warranty) • Stock and bond records (Keep for 6 years after selling) • Loan documents (Keep until the loan is paid off) • W-2 (Keep until you begin claiming social security. It’s the best estimate of your earnings) • Warranties and instructions (Keep for the life of the product) • Other bills (Keep until payment is verified on the next bill) • Depreciation schedules and other capital asset records (Keep for 3 years after the tax life of the asset) forthcoming about their operations and expenditures. If you’re unsure of where to donate, check out their list of “Charities With Perfect Scores.” If you want to provide humanitarian aid, Direct Relief (DirectRelief.org) is a well-known charity, and it has a perfect rating of 100 on Charity Navigator. They provide medical treatment in resource- poor communities. If you’re more inclined to protect the environment, check out The Conservation Fund (ConservationFund.org), which seeks to preserve natural resources while fostering economic development in America. Education-minded donors should look up Sponsors for Educational Opportunity (SEO-usa.org), another organization with a perfect 100 from Charity Navigator. They strive to provide robust education for underserved communities. There are thousands of excellent charities to donate to, and many of them are probably right in your backyard.

A t the peak of the holiday season, many Americans find themselves overcome by a spirit of generosity and goodwill. Many people go beyond finding the perfect gift for friends and family and give their time or money to a charitable organization, seeking to make the holidays a little better for those worse off than themselves. But with thousands upon thousands of charities to choose from, how do we ensure our dollars are truly going to the best possible cause? It may seem obvious, but it’s best not to hand your credit card info to an anonymous organization soliciting your aid. The IRS has

The Lifetime of Financial Documents As the end of the year approaches, and tax season is just around the corner, we often have clients inquire about how long they need to hold on to financial records. It’s easy to get in the habit of hoarding documents, with the rationale that you Personal Documents to Keep for 3 Years • Credit card statements • Medical bills (in case of insurance disputes) • Utility records • Expired insurance policies

may need them someday. However, if you’re looking to streamline and organize this area, it can be a bit daunting deciding what stays and what goes. Below is a guideline for how long to keep your financial documents. And please, remember to shred all documents before discarding them to protect yourself from identity theft. Personal Documents to Keep for 1 Year • Bank statements • Paycheck stubs (Reconcile with W-2) • Canceled checks • Monthly and quarterly mutual fund and retirement contribution statements (Reconcile with year-end statement)

Personal Documents to Keep for 6 Years • Tax returns and supporting documents • Accident reports and claims • Medical bills (if tax-related) • Property records and improvement receipts • Sales receipts

• Wage garnishments • Other tax-related bills

Personal Records to Keep Forever • CPA audit reports • Legal records • Income tax returns • Income tax-payment checks • Investment trade confirmations • Retirement and pension records

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