Episode 16- Financial Affirmations Part 2 – Sharing Financial Resources with Moxie and Momentum
The mindset many people have around giving can sometimes diminish the significance of generosity. Oftentimes, we give without having a sense of why we do it or why we share our resources with certain organizations.
Today, Danielle Howard is here to help you shift your thoughts around giving, allowing you to truly experience the joy of sharing with others.
In part 2 of Danielle’s four-part financial affirmations mini-series, you’ll learn:
● What it means to share your resources with moxie
● Why making sharing a priority can bring more happiness to your life
● The importance of starting conversations around the ways we share our financial resources
● The tools you can use to share your resources according to your financial goals
● The role taxes play when you make charitable donations
● And more!
Tune in now to join Danielle in creating new conversations around generosity and the mindset of abundance![00:00:02] Welcome to the Wealth Done Differently – Retirement Podcast. Danielle Howard – A Certified Financial Planner ™ shares insight into the financial tools, techniques and temperaments needed make the most of your retirement dollars and relationships. Danielle bridges the gap between Wall Street and Main Street, bringing complex financial topics down to earth. Danielle will educate and inspire you as you define and refine your version of prosperity. [00:00:35] Hello and welcome to the Wealth Done Differently Retirement Podcast with Danielle Howard a certified financial planner. Today is part two in a four part series entitled Financial Affirmations in Retirement. Good morning Danielle how are you. Good morning Aric I’m fine thank you. Wonderful. I heard you had a great weekend. Can you give us a little a little story behind what you did this weekend. [00:00:59] Well my husband and I spend a little time once a year just having a day alone without cell phones, without computer access, and kind of have a format that we go through to look at our look at our year in retrospect and look forward into what lies ahead. And maybe some thought some ideas some goals and and what can we do to encourage each other or hold each other accountable and it’s sometimes hard work but definitely worth it And get outside do a little walking do a little bit enjoying of our absolutely gorgeous Rocky Mountains that we get to live in. So in deep appreciation of each other in this gorgeous place. We look forward to what 2019 has for us. [00:01:45] That is awesome. He does out of curiosity, I know that you said you unplug. You don’t have any electronics and things like that. How long have you been doing this retreat with your husband. [00:01:57] Year number two. Yes. [00:02:00] Hey that’s the great foundational start of something beautiful right there. [00:02:06] Not long standing, but it’s something that’s in part does serve both lifelong learners and we both want to make the most of whatever season we’re in. And sometimes that takes some intentionality and looking at it and what you want to accomplish and what’s working what’s not what adjustments need to be made. [00:02:26] I’ll tell you what next year my wife and I are celebrating 25 years of marriage and you are absolutely spot on. Doesn’t matter what’s going on in your world workwise kid wise family wise you have got to get by yourselves and get that reset button and that’s something that we need to do. We do date night and things like that, but getting away is, you’ve planted the seed Danielle, so I appreciate that. That’s something I’m going to take take into consideration and talk to Candy about. We’ll do that from this point on. I like it. [00:02:55] I look forward to hearing what your plans are. Well I think we’re coming to Colorado. [00:03:01] Because doing it here in Nebraska it’s really flat here and not as much beauty to behold and I would love to get up to Estus Park again and spend some time up there nice I quiet in the mountains. [00:03:12] All right. Yeah gorgeous. All right. So if you’re ok with it I would love to go back and visit the affirmations that we started on the first podcast and just read through them to bring up the audience to speed. Is that OK. [00:03:25] Perfect thank you so much. You bet. [00:03:27] So in the first podcast we covered the very first affirmation which I’ll read right now. I will bring money into my life with integrity dignity competency grace and joy. Today’s podcast we’ll be going over number two which is I will share my financial resources with moxie and momentum, which I love that. The third affirmation is I will nurture grow and protect my financial life with diligence wisdom and care. And the fourth one I will spend my money within safe boundaries and joyful intention. Covering that second affirmation today where do we start Danielle. [00:04:05] Well let’s start with the order of the affirmations. Did you notice anything different about maybe the way we bring these affirmations up. [00:04:15] I did. And what I what I thought to myself when I was reading through these I love the fact that the number two one which we’re covering today is I will share and that comes before I will spend which is number four. So I think that’s that’s really good to be thinking of others first and then self. [00:04:32] Yes I think it’s it’s a cultural shift that we’re trying to make and the way we’ve normally done it is we bring money into our life, whether it’s with work or with bringing during retirement maybe with your turning on the faucet for your 401k or from Social Security. So you’re bringing money into your life. Then spend it. [00:04:54] We’ve got all of those expenses for over our head and clothing on our back and fund nights out and trips and all that. So people tend to spend that they may think about growing and protecting and nurturing it. And if there’s anything leftover we’ll give it. I’d like to think of that kind of in a different priority has I think true financial health will really thrive and this shift in our priorities if we start taking a look at how to share what we have. [00:05:30] And I think it’ll bring a lot more impact in your life and more happiness to your life. [00:05:36] I agree. And so my next question truly is when we talk about sharing thus says ‘share with moxie’. What is sharing with moxie, Danielle. [00:05:48] Well I think first of all we have to take a look at changing again maybe some of our verbiage. Traditionally we’ve heard let’s give back. Let’s see how we can give back. And I think at least because I work with a lot of nonprofits I work with a lot of donors and people who are looking at how to best share that, maybe I just hear it too much but in my mind I give back, and it conjures up that idea of when you take something away in pictures I picture the little kids playing in the sandbox and give Jimmy back his toy. And I think in our current economic environment there’s a lot of consternation about the idea of sharing can have a political bent to it too. And so I don’t want people to get caught up in maybe some of the words we’re using. So when I say share it’s not like redistribution of wealth. That isn’t the point here. And when I talk about giving back, it comes from a place when you brought many into your life with integrity dignity competency grace and joy, and you started to wrap your hands around that idea of gratitude and I live with a mindset of abundance. Then you’re able to share critical to open your hands and that leads us into that idea of [00:07:18] can we give with moxie. So, to talk about moxie is the Urban Dictionary again [00:07:26] it’s a new word, it’s a real hip word, especially up here in the Rolling Fork Valley, close to Aspen. [00:07:31] So it’s got all the latest hip vernacular. And in the urban dictionary it’s defined as sass and courage and spunk and determination or attitude. So, I encourage people to go oh what does that have to do with giving of my financial resources. [00:07:52] We know that we’re a nation of givers and we are we are a very generous country. In 2016, Giving USA says that you know American individuals estates and foundations have contributed an estimated 390 billion U.S. charities. [00:08:12] That’s huge. We give a lot. [00:08:15] But could we do more. I think so. I know I can. I want to. [00:08:21] Could we do it more efficiently. We take a look at what resources we have to share and how can we get creative with that. [00:08:29] Or how could we learn about how to do it. You know I think we can. Can we give without jeopardizing our own needs or those of our family in how we share what we share. [00:08:41] I think so. And can we share our living. So knowing where it’s going. I – why not. [00:08:49] Yeah this is what I think of as is moxie. We just kind of have to you know get a little bit of attitude around sharing what we have. I think it can be a lot of fun. I think there’s a lot of joy to the experience, a lot of creativity to be experience in our in our giving. So that’s what I define as kind of that moxie. [00:09:08] I agree. I love the fact that it really is associated with kind of that word you know like you said being sassy, some attitude there and giving with a good attitude is what makes all the difference. And the words give back almost sound like an obligation, and it’s something that you have to do because you’ve been given something you have to be able to give back. And I think that that’s the wrong attitude to go on with. We as a nation like you said have given so much and especially in times of need people are generous and they don’t think about oh I’ve been given this so I’m definitely I’m to give to them. It’s just hey they need something and I’m going to give it. And then the last thing is I just love the word moxie. Yeah it is a fun word. So momentum is fun too but not as fun as moxie, but where did the momentum part of this affirmation come from. [00:09:55] Well that idea that you are not pulling a U-Haul behind a hearse. That you can’t you can’t take it with you. [00:10:03] As much as you try. [00:10:05] That’s lots of fun little stories about that.. And I think a lot of the estate planning process people want to have control from the grave which is another podcast but – I’m writing it down. [00:10:17] Control from the grave. Got it. Yeah yeah. [00:10:21] Bottom line is you can’t take it with you, so why not figure out all the moving parts while you’re alive to either share some of what you have while you’re living or set it up properly for when you’re gone. [00:10:35] But that momentum means how can we start amplifying the conversations and the contacts and the connections. And we want to look at how how do we vet the organizations that you want to be involved and engaged with. Or, [00:10:53] how do you want to educate those that are going to be receiving it you know over your lifetime if you want to help family members out with building on their human equity and their human capital in good ways. Again we will always want to take a look at how do we want to lift others up. By the story of how and why teach people how to fish not give them the fish so that momentum as it involves education it involves really understanding what you have and how to use it wisely and experiencing the joy along the way. And it’s creating that that flywheel of generosity. The more you do it the wiser you get about doing it the better you understand the tools that you can use in giving it, and it creates more momentum. [00:11:47] Danielle, you and I have been working together for a while now, not long enough because I don’t know a ton about you. I don’t know exactly how you got in the business. And when and what you did before you started your own business and all that. So I’m excited to learn more about that journey but I’m curious for especially for this podcast, can you kind of share some of your story around how you’ve come to this point in your life and that journey of generosity that you’ve figured out with with your husband, by yourself, with your family. How has that come about. [00:12:18] Thank you for asking. It’s something again what we are working together I have encouraged people to start talking about there are many stories, their many scripts. And those scripts have a context around every different aspect of your money life how you bring it in. And so how do you give it. I think it’s really important that we look at our stories and I in looking at my own as I’ve been on this journey of generosity, it started out way back when you know little little girl and putting some change in those little pastel envelopes to put into the church basket. I don’t know if it was the pastel envelopes or just the actual it was kind of fun to put it in a basket. I’m not too sure what aspect of it brought me joy, but it was it was fun and it made me feel good. My family was very focused on life generosity. I don’t think they intentionally did it, I think it was just in their nature by the bend in their DNA and then you know now it is in mine. [00:13:28] We were in it I saw my mom cooking for Meals on Wheels and we would have guests into our home too to share a meal or share a holiday. My dad was involved with Kiwanis, and so I grew up with it was part of what we did and who we were. And so as I grew into my own relationships and you know married Mark, we had to bring our life stories together and [00:14:01] you know I don’t think it was intentional but the conversations just started happening that I think for many people we need to be intentional about it it was natural for us. But for I would say the bulk of people out there. Yeah. Coming up with a story about her memories around giving is not something that comes up at that dining room table. [00:14:25] Yeah. I think it should though. I mean because that’s it’s powerful those stories mean something to each individual person the reason why you give especially to a specific organization, it’s usually deeply rooted in history. Some somehow it’s affected you and that’s why you’re giving to the specific cause we’re giving to your church or whatever it is. So I’ve got two questions based on that for you. One of them would be can you kind of talk about some tools that people could think about and use especially since we’re in the season of giving and then the second part of it is if somebody is out there listening that really didn’t have that maybe their parents weren’t the type to give to a charity or at least maybe they didn’t do it openly so that the children were able to see and they didn’t get kind of taught that from an early age, how would you say that they start living that journey of generosity, [00:15:17] if they have that curiosity of how you get to that point. We have to embrace that it is a journey and that you’re going to start somewhere and to just stick your toes in the proverbial getting water sharing water. [00:15:32] I think a good way to start is you know again having the conversations and in starting to embrace that mindset of abundance and sufficiency. So I think it needs to start with an attitude. That attitude of gratitude. [00:15:48] What we appreciate appreciates. And if we can have that type of a whole day with open hands and be grateful for what we have, it frees us to share a little bit more. And once you step into that and give a little bit and feel how good it feels then you might try it in a little bit different way. I will share some ideas especially with this time this season that we’re really into that could be really valuable tools, but I think first of all we have to wrap our heads and hearts around that added to that gratitude and that mindset of abundance. Because you can’t share when you’re constantly seeking on how to feel yourself and if you have a mindset of scarcity and that’s idea of all I need to get it before somebody else gets it. And again I I really want to be careful about I do not come about this from a mindset of judgment. Everybody is on a journey. Everybody is at a different place and I have struggles you know throughout my life on this on this journey. I’m not saying you know I’m doing it right and you’re doing it wrong. I’m saying we need to look at this together. We need to share our stories. We need to maybe step out in faith and say some of our fears around giving. Try something on for size. See how it fits, see how it feels, make some adjustments and move to the next step. [00:17:24] Absolutely. And for those that are listening if you’re listening to this and say you know what I just can’t. It is. It’s too tight financially. I’ve got so many obligations. We understand that we get that we’ve been there. Some of us are there now. It’s not always about money it’s also about time. And it doesn’t have to – Exactly – It doesn’t have to be outside the family. If you have an elderly aunt uncle parent that you can just go and spend a couple of hours with just helping them around their house. Easing a little bit of that burden. That’s exactly the same thing it’s the same thing you’re talking about. And that’s all part of the same journey. So I think it’s important to say that because this isn’t all about finance. That’ll come come at a time when you’re able to do that and you’ll find that rewarding that enjoyment from that. But even now just knowing the winter months are coming there’s there’s things you can do in the community. [00:18:13] Thanks for bringing that up Aric. I think it’s really important. Let’s start with a smile. Our world needs more smiles. Our world needs more take a moment instead of asking somebody you know how you do and move moving along your way to real and share some time and take that time to listen to how they’re doing. These are the important places to really start sharing. Then we can move into the financial context. [00:18:38] Yeah absolutely. I want to share a quick story with you, Danielle, just came to mind when you said that I have a buddy of mine named Rod and I will be sending this podcast to him as well. But years ago he had a commute. We both lived in Washington State and he had a commute that was about 45 minutes. And every morning he would be driving to work and people passing him just he noticed that they looked grumpy. Everybody that was passing him coming toward him that is just looked grumpy and so he just started waving just with one hand right off the steering wheel just waving her just waving and he said you wouldn’t believe it within about two to three weeks about 50 percent of the cars coming at them were waving back. [00:19:20] It’s just just something so simple so small. This guy is always happy always smiling and so he’s just like I don’t want to see people like this, and so he just started a complete stranger just waving frantically and smiling really big. They probably thought he was completely insane but they started waving back and smiling and that’s all it was. Something so simple and it was a huge impact I think, so that – didn’t want to derail it, but I thought those – Oh that’s perfect. [00:19:44] I think so many times when we think about sharing our financial givings we think of that either. You know I want to make sure when I’m giving is being in these we’re used to the way that I think it should. Yes. And that’s a perfect example. You’re never going to know how you change that person’s life. You’re never know what the trajectory of the rest of their day was going to go or what might have changed there. [00:20:12] And that’s something I think we need to take into consideration when we give up our financial resources. And that’s something that I think we all wrestle with is how’s my money going to be used or are there maybe some other emotions that are involved there that we have to unpack and understand that you know maybe we’re not giving for the right reasons. [00:20:36] That is if it’s connected to ego or you know you brought money into your life in a way that maybe wasn’t too good it’s you’re kind of wanting to give it back because that didn’t feel too good to bring it in. And I you know again I just encourage people to take a look at your emotions, your feelings, your mindsets, your bottom line, your heart around giving, because once we get into using financial tools, I think we can really create some leverage, and like I said, the momentum behind that sharing of our financial resources. [00:21:15] Absolutely. Danielle, for those that are at a point in their lives where they’re able to use finances to impact others and give charitably and do some planning like that, what are some tools that they can use that will also help others or their family or make a bigger impact whatever those things are. What are some tools that they should be looking at. [00:21:36] We know that taxes shouldn’t be your driving factor in giving. And we know that if we we’re really pursuing our heart and understanding our stories that we’re going to create that momentum around giving. But I do think it is important that we understand the financial tools that we have and use them wisely effectively, efficiently. [00:22:02] Charity Navigator says that 12 percent of annual giving occurs in the last three days of the year. [00:22:11] So we know tax benefits do matter to people even if they are following their heart and really creating that momentum. I think it’s important that people need to analyze – we’ve got a new tax year. We’re in the midst of this first year with the tax changes and I think the place to start is to take a look at your standard deduction that has now increased for individuals it’s gone it’s now up to twelve thousand dollars so for couples we’re going to have a standard deduction of twenty four thousand dollars. And if you’re over age 65 this is one that a lot of people don’t know is that you will get an extra thirteen hundred dollars per person on your standard deduction. So the standard deduction has increased quite a bit and it’s probably going to mean that less people are taking their itemized deductions and moving more towards those standard deductions. [00:23:15] They’re saying that about 30 percent of Americans have itemized in the past and now it’s estimated that that’s going to go down to about 10 percent. [00:23:24] We’ve got a really short window now in 2018 and I know people may be hearing this podcast in 2019 and that’s that’s good [00:23:35] we can always do some planning into the next year. But one of the tools that you could use towards the end of this year is something that I call lumping and chunking. And, this is where you take a look at what’s going to be better your standard deduction or itemized deduction. And if you can still if you still want to look at itemizing for this year you could use some tools to get a whole bunch of money to nonprofits in a creative way this year and then go ahead and in 2019 take your standard deduction. So let’s let’s peel that apart a little bit. There’s times when I will use a donor advised fund for a client, which is a charitable organization in and of itself, but what you can do with a donor advised fund is that you can give appreciated assets. So if you have stocks that have appreciated over time and if you were to cash those in you might get hit with capital gains. A lot of donor advised funds can take on a different type of real estate or business assets or some even you to contribute livestock or hard assets, but it’s a way for you to get around the capital gains so you contribute to a donor advised fund. You get a deduction in the year that you put whatever asset into this donor advised fund. Then the donor advised fund will sell whatever you have contributed to it and purchase a probably a balanced type portfolio, but then you can give it away. It’s a donor advice, then you will be able to advise the fund where you want to give to. So, if you want to set up monthly giving to your place of faith or if you want to set up some sort of systematic giving. That’s something that you could use for your giving all of 2019 and maybe into 2020 and it’s a way to get a huge tax deduction in one year, but do your giving moving forward in different ways. Yeah it’s an interesting tool to look at how you might be able to chunk giving into the end of this year maybe even into next year. You want to of course talk to your financial adviser to see how this fits into your overall plan and how you would want to maybe bring in your family to have discussions around where you want to advise the fund to to give some of your resources away. That’s a that’s a really fun one to use if you want to get strategic in and lump and chunkier charitable dollars into one year or another. It’s complicated Aric so well this is where we want to make sure you’re talking with your your tax advisors, that you’ve got a team of fiduciaries that is walking alongside you, to make sure you know again you’re using the best tools for the best fit in your situation. And your team wants to be if you want that made up of a good financial adviser a good tax adviser maybe a good estate adviser. And everybody wants to be seeking out what’s in your best interests. Absolutely. Let’s talk another about another one especially for folks who are in their rewirement, refirement, retirement years and they may have hit that magical age of 70 and a half where they have to start taking their required minimum distributions out of their IRA. [00:27:28] There is now a rule that’s been put into stone called the qualified charitable deduction which allows you to take that required minimum distribution or even more if you would like and give it directly to an organization of your 501C3 choosing. This is it can be really powerful in that it allows you to give money directly out of your IRA to the organization and keep it off of the first page of your tax return. Nice. So how does how does your usual RMD, when you take money out of your IRA, how does that come to you. [00:28:15] In a check. In a check. OK. And, it’s taxed. Yep. [00:28:23] It’s taxable income on the first page of your ten 40. [00:28:26] And this can have a really big impact if you have a large IRA and are having to pull money out of that on an annual basis because the government knows that the largest bucket of money that they’re going to get as taxable opportunity for them. If you are able to send that money directly to a nonprofit and it keeps that off of that page one of your tax return [00:28:53] it keeps your adjustable gross income lower. It’s also going to impact your Medicare premiums. [00:29:01] Oh wow. Yeah. So it can have a huge impact, and again because standard deductions have gone up so much and it may be a better way to go rather than take the income so you get your check from whatever IRA custodian you’re working with. And it goes into your bank and then you turn around and you write a check to the organization of your choosing. And even though on an itemized on your itemized return on your Schedule A you can deduct up to 60 percent of your AGI. [00:29:40] It was capped at 50 percent with the with a carry forward that’s actually risen to 60 percent. [00:29:46] But for a lot of people you know taking it off the front page of their tax return is going to be a lot more effective and efficient. So again weighing that out with your advisers to take a look at do you want to take that IRA, and it could be your required minimum distribution, or it could be again a little bit more, [00:30:10] and giving that directly to the nonprofit organization can be really powerful and saving you taxes as well as getting money to your organizations. [00:30:22] Nice. Are there any other tools you want to talk about on this podcast. [00:30:26] We’ve got so many of them, and we may have to do another podcast on how they some of the details around them. You can take a look if you need income if you’re concerned that oh my gosh if I give this away I might not have enough for myself. Again this is where the planning piece comes in. This looks at where you really want to look at your timeframe, your opportunity for growth, all the different moving parts and be working with an adviser. [00:30:55] But the idea of a charitable remainder trust may be a tool that you want to take a look at. And this is similar to a donor advised fund that you can put appreciated assets of all sorts into it but in this one you’d get a return. [00:31:13] You get to pull money out of it yet income out of this trust. Again lots of moving parts to it, but I just encourage people to educate themselves as we’re looking at how do we want to give in ways that follow our hearts with our financial resources. How do we want to share the financial assets that we have in ways that are powerful that a charitable remainder trust maybe a tool that you want to take a look at. [00:31:44] Yeah. Danielle you’ve shared a ton of great information on this podcast. I’m looking forward to the other two in the series. But before we wrap up today what would be your one bit of advice that you want everyone that’s listening right now to understand and hear from you. [00:32:00] Giving feels really good. Sharing sharing it just brings new joy to your financial journey. And so that’s the bottom line. But I think for many people we need to educate ourselves. We need to have conversations about it. We want to find wise counsel. Feel free to give me a call feel free to take a look at those other organizations out there that do some whether it’s educational about who you are as a giver bolder giving dot or is a really good one generous giving dot org is fantastic as is women doing well dot org. I also encourage people to take a look at our course doing dollars differently retirement an eight week course you can do in the privacy of your home in your pajamas. [00:33:02] Definitely good in the wintertime big fire pajamas and Ecourse. [00:33:06] Yes and we’re going to be looking at again all of these ways of bringing money into your life, sharing and giving, growing, spending with intention in your retirement season. We’ve got a monetary manifesto that you can download online for free and you can also get your personal copy of the financial affirmations at WWW. Danielle Howard number four letter U dot com. [00:33:36] Danielle thank you so much for your time today. [00:33:38] I really appreciate. Appreciate the time with you Aric. Thank you. [00:33:42] You bet. And thank you all for listening to Wealth Done Differently with Danielle Howard. If you have not subscribed to the podcast yet please click subscribe now button below. This way when Danielle comes out with a new podcast it’ll show up directly on your listening device. This makes it much easier to share these podcasts with your friends and family and I would love for you to share the series especially but more importantly this journey of generosity is a personal journey. And if you have questions of your curious if you want no nonsense answers with no judgment and just to talk to somebody about their experience and how you might be able to break into this in a wise way in protecting you and your family and the finances you’ve been blessed with, give Danielle a call please. She’s amazing and she would love to hear from you. And she’ll just sit down and have a great conversation in an office that overlooks a beautiful river and you couldn’t get much more relaxed than that. Thanks again for listening today. For everyone at Wealth Done Differently Retirement, this is Aric Johnson reminding you to live your best day everyday. And we’ll see you next time. [00:34:43] Thank you for listening to the Wealth Done Differently – Retirement Podcast. 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The Content has been made available for informational and educational purposes only. The Content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor or other qualified service provider with any questions you may have regarding your investment planning. Danielle Howard, Certified Financial Planner ™ is an Investment Advisor Representative of Cambridge Investment Research Advisors, a Registered Investment Advisor. Securities offered through Cambridge Investment Research Inc., a Broker/Dealer, Member FINRA/SIPC. Cambridge and Wealth By Design, LLC. are not affiliated.