Financial Planning Fridays #91: A Head Start

Many of our clients have more saved and invested than they will ever spend in their lifetimes. This gives them the opportunity to make gifts to improve the lives of family and friends or further the mission of their favorite charities. 

They can use the power of compounding through time to magnify these gifts. 

Please let me share an example with you that you can likely relate to. I have a brand-new nephew who was just born last week. 

The most that my wife and I can gift to him tax-free without filing a gift tax return and using our lifetime exemption is $36,000. 

That gift can be set up today to help him with future life milestones. The results are amazing when we use previous market returns. (S&P 500 dated back 18, 30, and 65 years) 

A $36,000 gift will be worth about $189,000 when he is ready to go to college at age 18. 

It will be worth about $620,000 when he goes to purchase his first home at age 30. 

Or the funds could be put into trust to pre-fund his retirement and at age 65 will have grown to more than $10 Million. 

Imagine the amazing influence this can have on someone’s life knowing that they have this safety net for their future self. 

If you may be interested in gifting, please call us. We would love to discuss all the ways this can be setup and the amazing things your gift could do for a loved one.

Thank you and we look forward to talking with you again soon.

Be on the lookout for our next Financial Planning Fridays episode. Subscribe to our Youtube Channel so you never miss an episode. Or contact us directly; schedule your 15-minute call with us today.