August 2019

Sen. Elizabeth Warren wants to make fixing the U.S. economy a priority if she becomes president, and she has a plan to do it. But long before she was running for president, Warren was a personal finance expert hoping to help the average American take control of their finances. She even co-authored two books on the subject. Her 2005 New York Times bestseller, “All Your Worth: The Ultimate Lifetime Money Plan,” includes her popular budgeting rule, the 50/30/20 budget. According to the 50/30/20 rule, 50% of your income should be dedicated to monthly expenses that are needed, such as housing, transportation and groceries; 30% can go toward wants or discretionary spending; and 20% should be dedicated to savings.

Whether you’re saving money, seeking an income stream or looking to diversify a stock portfolio, fixed-income investing deserves a look. Bonds and CDs are among the most popular fixed-income investments, each with income payments for a designated period of time.

If the tired old cliché applies and the best things in life are free, then surely its opposite does as well and the worst things in life are fee. ATM fees. Concert ticket surcharge fees. Airport tax fees. How shall we count the feeble paths to hair-tearing aggravation?

“With a charitable trust, the consumer donates appreciated securities including stocks, bonds and funds, without paying any capital gains tax,” says Carlos Dias Jr., a wealth advisor at MVP Wealth in Orlando, Florida. If an investor sells $100,000 worth of appreciated stock that was originally worth $25,000, that person would owe capital gains tax on $75,000. If someone donated the appreciated stock to a charitable trust, the $100,000 would go to a charity that would sell the stock, while the investor incurs no capital gains tax liability. Depending upon the type of trust, the investor receives income from the trust and a tax deduction during the next five years after the gift is bequeathed, Dias says.