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 Article Of The Day
 How to Increase Your Income, Lower Your Taxes and Help Your Favorite Charity
 


Given the fact that most seniors are interested in a secure income, reducing risk and lowering taxes, here is a planning technique to consider if you are trying to increase your income.

Maybe you have a CD that is coming up for renewal and you discover the rate is going to be lower. You could have some stocks or mutual funds that were invested for growth and are thinking about selling some off and re-investing in something that would pay you an income. The only reason you haven’t sold them is that you don’t want to pay the capital gain.

I would suggest including a charitable gift annuity in your list of options.

A charitable gift annuity is a combination of a gift to charity and an annuity.  For older people, annuity rates may be 8%, 9% or even higher.  Since part of the annuity payment is a tax free return of principal, the gift annuity may provide you with a substantial income.  The combination of partially tax free income and the initial charitable deduction makes this planning device attractive.

While this arrangement has its own unique benefits, the rate of return is less than if you had bought a commercial immediate annuity. Therefore, your decision to use a gift annuity should include a desire to eventually leave money to a qualified charitable organization that you have an interest in, such as a church, school, hospital, etc.

Gift annuities are easy to set up. You simply transfer property to the charity and the charity promises to pay a given amount monthly, quarterly, semi-annually or annually to you for as long as you live. Alternatively, you could elect to have the payments paid to you and another person for as long as you both live. Or you could elect to have the payments made to you for the rest of your life and then to the second person for the rest of their life. But the maximum number of people per gift annuity is two.

Gift annuity rates are set by the American Council on Gift Annuities. Charities don’t have to use these rates, but most do. So you don’t have to out shopping for the best rate. Make your choice based on the charity that you would like to support.

There are two tax issues that you should take into consideration when comparing a gift annuity to your other alternatives.

The first is that if you fund the gift annuity with cash, part of the payment you receive is taxed (as ordinary income) and part of it is not taxed as it is treated as a return of principal. If you fund it with appreciated property, and are the recipient of the income, part will be taxed as capital gain, part as ordinary income and part could be treated as a return of principal and not taxed. However, if you live past your life expectancy, all later annuity payments will be ordinary income.

The second tax issue is that when you give the charity your asset in exchange for a life income, you get a large income tax deduction. For most people, this income tax deduction is so big it cannot be taken in one year. So there are provisions to spread the deduction out over the year of your donation and five more. Your accountant can tell you if this will eliminate income taxes for the next 6 years or not. Chances are good that it will.

Please note that I am only giving general guidelines about taxation. Before you set up a gift annuity, you should sit down with your tax advisor to determine the exact tax ramifications for your situation.

There are a number of charitable gift annuity options and applications. This brief overview has given you some of the basics. If this seems like it may fit, contact the charitable organization of your choice and get a proposal. Then sit down with your accountant and financial planner and have them help you compare a gift annuity with your other options.

Author Robert D. Cavanaugh, CLU  Added On Sat Jan 20th,2007
Rating (0)  Category Finance
 
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 Latest Articles
 Nothing to Do? Create a Fun Friends’ Study Group at Home
 

Want something to do in the evenings when you're bored or lonely?  What if you could gather a group of your friends to your home after dinner once a week to have a fun friends' study group?  No special training required for a fun friend's study group, only a favorite book of your choosing that is therapist recommended. Be sure you feel safe belonging to a group of this kind.  If not, decide to seek professional help. The following are fun friends' study group suggestions.

  1. The Dance of Anger By Harriot Lerner
  2. Boundaries by Dr. Henry Cloud & Dr. John Townsend
  3. Co Dependent No More by Melanie Beatty
  4. Emotional Blackmail by Susan Forward, Ph.D.
  5. The Artist's Way by Julia Cameron

 

                The fun friends' study group guidelines that follow can help you set the tone.   A main purpose for a group like this is to have fun and share your learning experiences.  There doesn't have to be a leader when you safely set up a reading and sharing group experience.  It's been researched that when women get together as in a group, something chemically changes in their bodies that causes them to feel really good.  How about that for fun?

 

1.       Want to learn to speak up and be in control?

2.       Want to basically feel good about yourself and not be such a pleaser?

3.       Nothing to do after work and dinner?

4.        Boyfriend problems or split?

5.       Divorced and wanting to share?

 

What would be these fun friends' study group guidelines?

 

1.       Have a focus with the choice of book and clarify your goals.

2.       Choose members that are stable enough to handle the confrontation and the fun.

3.       Pay attention to feelings.   Ask, "What are you feeling?"

4.       Decide to learn to be flexible

5.       Decide to be greedy in your sharing without monopolizing time

6.    Level by openly responding when confronted and express your feelings.  For example, "I feel frustrated when I hear your comment."

7.    Don't expect to be understood by the fun friends' study group.  Make it enough for you to be heard.

8.    Avoid advising, interpreting, and questioning; instead decide to share your feelings and your own experiences.  Tell your personal stories.

9.    Let the gossip go (gossip is a form of anger) and maintain a total confidential commitment within the fun friends' study group.

10.Let go of band-aid help.   By rushing in to help or be supportive or comforting someone expressing a painful experience, you disrespect their ability to fully express what they have to say.  People grow by living through their pain.

11.Give feedback using "I messages".  If something touches you let them know your reactions whether positive or negative.  For example, "I feel so connected to you when I hear your experience."  Be willing to be honest and level, which enhances the level of trust within your fun friends' study group.

12.Be willing to discover your defenses. 

 

The purpose of fun friends' study group is to discover your feelings and to identify defenses that prevent honest expression of feelings.  While change is a goal, look at the group as a tool to help you to discover yourself at a deeper level.  Look at the fun friends' study group as a place to try out experiential techniques or use new tools that can help you cope and even enjoy your life and your relationships more.   Keep the fun friends' study group light and have fun.                  

 

 

   Must Do Feeling Chart That Can Add to Your Self-Awareness

 

              Use this sheet as a homework assignment to practice being more aware of your feelings.  Ask yourself, "What am I feeling?  Ask yourself this question at the end of your day and place check mark by the feeling.  People often fear their feelings.  You need to feel safe in doing this exercise.  Don't attempt it if you feel unsafe.  Seek a therapist to work with you.  Feelings will become like a partner to be listened to, not feared.  If not in therapy share your feelings with a trusted and safe person or friend who will listen, not give advice.  Allow feelings to be part of you that can give you signals and clues to lead you to your truth.

 

Feeling                           Mon.               Tues.               Weds.                 Thurs.               Fri.                   Sat.              Sun.

 

Angry

Sad

Guilty

Lonely

Bored

Embarrassed

Afraid

Anxious

Disappointed

Hate

Happy

Frustrated

Disgusted

Love

Lust

Compassion

Confident

Jealous/envious

Affectionate

Excited

Confused

Resentful

Author Kathleen Fuller PhD  Added On Sun Apr 26th,2009
Rating (0)  Category Leadership
 Self Help 40 Quiz Questions to Know Yourself Better
 

In taking this self help quiz you may be surprised at the end. So take a piece of paper and write the numbers 1-40.  Then select the answer (never, seldom, occasionally, often, usually) that is your first impulse.  If you second guess yourself you are being dishonest and this could lower your self esteem.  There is no perfect answer just do the best you can and get ready to learn about your boundaries. If you choose to, this could be a start of your healing journey.

never                           seldom                      occasionally                     often                            usually     

1.      I’d rather help another than take care of myself.

2.      Others’ opinions and beliefs are more important than my own.

3.      Others use or take my things without asking.

4.      I am uncomfortable asking for what I want or need.

5.      I feel responsible for others’ feelings.

6.      I don’t have much alone time.

7.      I get angry or irritated with others.

8.      I’d rather go along with others than say what I want to do.

9.      I feel guilty or bad for being so different from others.

10.  I feel anxious, fearful, or stressed.

11.  I spend most of my time helping others and I don’t tend to my wants or needs.

12.  I feel empty in life like something is missing.

13.  I feel hurt.

14.  I react and I am sensitive to criticism.

15.  I tend to be loyal in relationships even though I am being hurt.

16.  I feel sad.

17.  I tend to feel what others are feeling or take those feeling on myself. 

18.  I tend to take on the moods of those close to me.

19.  It’s difficult for me to know what I believe or think.

20.  I feel my happiness depends on things outside myself.

21.  I feel good.

22.  I have a difficult time knowing what I feel.

23.  I can’t decide about things.

24.  I find it hard to say no to people.

25.  I feel my happiness depends on others.

26.  I am uncomfortable looking others in the eyes.

27.  I find I get involved with others who end up hurting me in some way.

28.  I tend to trust others right off.

29.  I see myself tending to get involved with those that are bad for me.

30.  It is difficult for me to make decisions.

31.  It is difficult for me to keep a confidence or secret that is shared with me.

32.  I tend to get caught up and in the middle of other people’s problems.

33.  If someone I am with in public acts up, I feel embarrassed.

34.  I lend others money and don’t get it back on time.

35.  Some never pay me back.

36.  I feel ashamed or embarrassed.

37.  It is not easy for me to know in my heart my relationship with a Higher Power or God as I know it.

38.  I want to rely on what others believe about spiritual or religious matters.

39.  I feel I put more into relationships than I receive from those relationships.

40.  My friends or acquaintances have a hard time keeping secrets or confidences which I share with them.

 

Does this sound familiar?  Your life is so chaotic that you’re on the run.  Sit down dinner time is non exsistent because of your schedule. You eat whenever you can and overeating has become a habit.  What is chosen here is the value of chaos with no boundaries for your health and nourishing yourself.

 

 Let’s begin by defining a boundary or a limit.  Think of it this way, how far can you or another go in a relationship and still be comfortable.  Your relationship with yourself could be in chaos too. The key here is to know when you are uncomfortable and have enough self-esteem to decide to limit in some way. As one example, you might apply this limit setting to your food intake. Knowing who you are begins with your boundaries or limits.  As you state your boundaries to others you can then sort out who is safe and who is not by the way another either respects your boundaries or does not.

 

How can you know what your boundaries and limits are when you may have grown up in a family that didn’t have healthy boundaries?  Who can learn healthy boundaries when there was no one to model clear limits or boundaries?  The forty Self Help Quiz Questions can help you to begin to know your limits. 

If you have answered occasionally, often, usually, to any of the above questions you may find it useful to continue exploring a healing journey that includes a 12 step group experience and a therapist.  The outcome of doing a healing journey is a feeling of freedom and peace.  I know from a personal healing journey it is worth it.

Author Kathleen Fuller PhD  Added On Sun Mar 01st,2009
Rating (0)  Category Stress Management
  Turn on Your Genes with Brain Exercises- Change Your Eating Issues/Disorders
 

Most People Think the Brain/Genes/Eating Issues/Disorders Can't Be Changed, but the Real Truth Is in Brain Exercises

 

The question to ask is how can you apply this concept of changing your brain and genes to be free of eating disorders (or any eating issue) brain patterns or negative behavior triggers?  It is documented by Doidge that brain exercises in some situations are more effective than medications.  Furthermore talk therapy as in psychotherapy is known to work in changing the brain as much as any medications do for depression and anxiety.  Those mental conditions are certainly a challenge for those suffering from any eating disorder, eating issue, or doctor ordered diet change.

 

         

Slow to make it's ways in the traditional belief system the idea of a flexible brain and its possibilities is shaking those old beliefs.  If the past belief has been that the brain is like the heart and is only mechanistic, then if one function and location is damaged, this rules out change.  This past belief has been called neurological nihilism.  In other words this past belief said, "You're stuck with mental limitations for life."

 

1.      Science got it wrong.  That is neural science. 

2.      The truth today is the brain has plasticity and you can use that knowledge to change your brain in many ways. 

3.      What might be the plan that can help eating disorders, eating issues & brain change?  We learn that our thoughts can switch our genes on and off, altering our brain anatomy.

4.      We then learn to use our imagination as a tool to "make it so" with this new brain model. 

5.      Books that begin with an initial eating disorders quiz can help you to find your weak areas. These weak areas are then given specific tools and exercises for strengthening.   You can find a workbook, playbook, journal, study guide and step-by-step approach that will give you the means to change your brain.

6.      There are so many ways to heal that no matter what your old beliefs are, many of the new brain exercises can help you. 

7.      The many myths regarding weight loss that can lead to eating disorders need to be put to rest. These continue to tease society into complacency and victim-hood.

 

 

          

 Let's look at an application of focused attention that changes the brain.  In using specific workbooks, playbooks, brain exercises/techniques, and the commitment to continue, a trained eating disorders therapist can help facilitate those positive brain changes.  Psychotherapy supports the individual in processing and letting go of negative feelings and negative thinking so that one can continue to be committed to using their focused attention.  Sustained effort needs to be encouraged by supportive safe others such as one's therapist, accountability partner in learning, a sponsor, or support group etc. 

 

For those that want results now would I ask you to begin an exercise program of running ten miles starting today? Do you think you could be successful?  Or would you be more successful if you started a walking program to build stamina and slowly increased it incrementally to running a one half mile then to one mile and so on.  Then you would find you are growing by following this plan of action.

 

The step by step approach for active eating disorders brain and genes change is modeled by Sherry.  Sherry is magnificent.  She is an active bulimic with thoughts of tantrum rage like "screw you" and "I'm going to let go and do for me."   Her purging behavior was eliciting feelings of doubt, shame, guilt and the undoing was loss of self control along with fear of loss.  Her life got to a point in her forties of going down the drain so to speak.  This prompted or madly drove her, at forty-four, to begin focused psychotherapy with brain exercises specifically from an eating disorders specialist.  She worked once a week in session, while doing her daily workbook/playbook brain exercises with a commitment focus.

 

Sherry noticed considerable positive changes after only six sessions and the bulimic deterioration that brought her to therapy began to reverse.  It is no wonder that Sherry engages her mind in something like classes or seminars, because she is a lifelong self-educator. In other words Sherry knows how to give it her full attention.  This was the exact ingredient to become successful at changing her brain

 

              According to psychiatrist Norman Doidge one needs to give what one is learning full attention to create change in the brain.  That's counter to what multi-taskers or book readers who quickly devour the information in a book do.  In his book, "The Brain that Changes Itself," Doidge powerfully points to the discovery that thoughts can change the structure and the function of one's brain.  This applies to old age as well.  What a breakthrough and it's being called the most important in neuroscience in four hundred years.  Doidge gives examples showing eighty –year- olds renewing their memory functions to the level of a person twenty years younger.  Doidge calls this a great example of adult plasticity or malleable brain that can and does rewire itself when it is damaged. 

 

           

After confronting those past "weight loss' myths, you can look for authentic clear cut brain exercises and actions that support personal empowerment plus the actual changes in the brain and the genes. Could this lead to healing eating disorders and eating issues on every level?  Is this truly the breakthrough action formula for proven brain change for all ages?  Yes.

Author Kathleen Fuller PhD  Added On Fri Feb 06th,2009
Rating (0)  Category Motivation
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