Lenexa, Kansas, United States - Global Church of the Nazarene - Model Generosity-Leaving a Lasting Legacy through Planned Giving for Saturday, 26 April 2014"A good man brings good things out of good stored up in his heart, and an evil man brings evil things out of the evil stored up in his heart. For the mouth speaks what the heart is full of."~~Luke 6:45 (NIV)
The staff at the Church of the Nazarene Foundation is blessed to see your goodness each day. You are truly making Christlike disciples in the nation because of the goodness that is stored up in your heart. Thank you for supporting your favorite ministry's future.
For more information on how to support the future of your favorite ministry, please reply to this email or contact us by phone at (913) 577-2983.
Check out our Facebook page by clicking here. We post articles relevant to donors, inspirational notes, and other helpful information.Blessings,
President
Kenneth R. Roney, J.D.
PERSONAL PLANNER
Domicile - Where You Live Affects Your Taxes
A successful business owner with a large estate passed away in 1976. He had grown up in Texas, moved to California and also lived for many years in Nevada. With a $2.5 billion estate, there were substantial federal and state taxes.While the estate proceedings were held in Nevada, both California and Texas sued to collect state estate tax. The Nevada Court eventually determined that the domicile or personal residence of the businessman was in Nevada. This was quite important, because the 40 wills that had been submitted were all determined invalid under Nevada law. The estate was finally distributed to 22 cousins under the intestacy law of Nevada.
While this was an unusual case with a very large asset value, there are several reasons why you should understand the basic rules of domicile. Where you live can affect both the distribution of your estate assets and your estate taxes.
There are two basic words that are used in common language, but may have quite different legal meanings. You may be a resident of a given location, but you can only have one "domicile." Your domicile is your permanent place of residence. It is where you reside most of the year and where you intend to make your fixed and permanent home.
If you have homes in more than one state, then the question of domicile may become quite important. For example, if your will were declared invalid the laws of your state of permanent residence would determine who receives your property. These laws vary substantially from state to state, and they are quite likely to generate litigation by distant cousins and other family members. Some family members may receive more under the law of state A and some may receive more under the law of state B. This result will nearly always lead to litigation - with a potentially huge cost to your estate.
Old State Domicile
If you have homes or a residence in more than one state, you may decide for tax or other reasons to move to a new state. However, the auditors of the "old state" revenue department may seek to find reasons for you to pay estate tax to the old state.
There are several flags that state tax auditors will examine to try to show that you still are domiciled in the old state.
1. If you have retained your old home and it is more valuable than the new state home, that will be considered.
2. You spend a sizable period of time in the old home and employ domestic assistance there.
3. If you have a business and are actively involved in the business, that could show that you intend to stay in old state and are subject to taxes there.
4. If you spend the majority of your time (and most states count any part of a day as a day in the state), then you could be considered domiciled in old state.
5. If you have valuable art collections or other items of great personal importance and you keep them in old state, that is another potential tie.
6. If there are children, grandchildren, nieces or nephews or other relatives that you regularly visit in old state, that suggests intention to remain there.
While the question of domicile is a fact-based issue, any of these factors will be used by state tax auditors to try to collect estate tax from your executor. If you intend to change your domicile to a new state (perhaps a low-tax state), there are a number of steps that you should take.
How to Change Your Domicile
In order to change your domicile, there are 10 steps that will indicate you intend to be a permanent resident of your new state.
1. Sell your old home and buy a home in new state. This is a very clear indication that you plan to live there. You also should keep track of the time that you spend in old state. The majority of your time should be spent in new state. It is helpful if over 183 days per year are spent in new state.
2. Obtain your driver's license in new state. If necessary, attend training or education courses related to driving vehicles in new state.
3. Register all of your vehicles, such as your cars, boat or recreational vehicle in the new state.
4. File your final partial tax return in old state. After that, plan to file your income tax returns and pay state income taxes in new state. If the state does not have income tax but has an intangible property tax or other type of tax form, file and pay that tax.
5. Register to vote in the new state. Do not vote again at any time in old state.
6. Close your bank accounts in old state and open new bank accounts in new state.
7. Close your securities accounts in old state and open securities accounts with brokerage firms in new state.
8. Obtain medical advisors and financial advisors in new state. Transfer all of your medical records and financial records to the new advisors.
9. Purchase a cemetery plot or other burial location in new state.
10. Change your passport address or obtain a new passport with the address of your residence in new state.
New State Documents
Another important way to show that you are moving to a new state is to contact an estate planning attorney in the new state and obtain new documents. It is desirable to sign a new will, a living trust, a durable power of attorney for healthcare or advance directive and a HIPAA release. All of these documents will demonstrate that you now are intending to be a permanent resident of your new state.
If you take the 10 steps and complete your new documents, you can be quite confident that you now have changed your domicile to the new state. If you spend a considerable period of time or still have an active business interest in the old state, you should also make certain that you are keeping track of the exact number of days that you spend each year in the new state and the old state.
If you pass away with a substantial estate, your heirs will be pleased that you have documented your domicile. Please note that the exemptions for estate tax or inheritance tax may be much lower in many states than a future federal estate tax exemption. Therefore, even with a moderate estate, there may be incentive for the state tax auditors to want to collect tax from your estate. Taking these steps and keeping good records is a way of protecting your heirs from the state tax auditors.
SAVVY LIVING
Walk Your Way to Better Health
Can you give me some tips on starting a walking program? I need to lose weight and get my blood pressure under control, but I hate to exercise.More than 25 years of research has shown that walking may be the single best exercise you can do to improve your health. Walking burns about 100 calories per mile, builds endurance, enhances muscle tone and is relatively easy on your joints. It may improve or prevent many age-related health problems such as high blood pressure, diabetes, heart disease, arthritis, osteoporosis and dementia.
Not only does walking improve your health, but it is also convenient and extremely low cost. All you need is a good pair of walking shoes and enough motivation to get out and go. Here are a few tips to help you get started.
Start Walking: Allow yourself time to develop a walking routine. There is no need to begin walking at a record pace or for long periods of time. Start out slow if you need to. For example, start by walking 20 minutes per day five days a week. When 20 minutes becomes too easy, add five minutes to your walks for the next week. Keep adding five minutes to your walks until you are walking as long as you desire. You should begin and end your walk with a few simple warm-up and cool-down stretches. Stretching will make you feel better and help prevent injury.
How Far: Of course, walking for 10 minutes is better than not walking at all. However, most fitness professionals recommend walking 30 minutes per day five days a week. Research indicates that you can receive the same benefit even if the 30 minutes is broken up throughout the day. Another way to measure your activity level is by the number of steps you take per day. Fitness professionals recommend about 10,000 steps per day, which is roughly five miles.
How Fast: The right walking speed depends on your fitness level. The ideal speed will cause you to breathe heavily, but not so heavily that you can’t carry on a conversation.
Staying Motivated
Starting a walking program takes initiative and sticking with it takes commitment. Here are some tips to help you stay motivated.
Find a Buddy: A walking partner can keep you accountable on days when you don’t feel like walking. Also, the companionship helps the walk to go by quickly and a partner will provide extra motivation to keep improving your speed and distance.
Use a Pedometer: These nifty little gadgets measure how far you’ve walked in both steps and miles. This tool allows you to see whether you have met a particular distance or step goal. Meeting a goal will give you a sense of accomplishment and will spur you to make an even more challenging goal to meet. You can purchase a pedometer at most sporting goods stores for around $25. If you’re a smartphone user, consider downloading a pedometer app such as those offered at accupedo.com or runtastic.com.
Join a Club: To find a walking club in your community call your local medical center, mall, health club, or running shoe store. Ask if they sponsor or know of any walking clubs or groups. You can also check out ava.org or mywalkingclub.org. Both sites allow you to search for non-competitive walking clubs in your area. If you can’t find an existing walking club in your area you can always start your own.
Keep a Journal: Keep a walking journal by logging how many minutes, steps or miles you have walked per day. At the end of the week determine your weekly total. This is very helpful to see how you are progressing.
Get a Dog: Studies have shown that dog owners are much more likely to take regular walks than non-dog owners.
Listen to Music: An iPod or other MP3 player can also make a nice walking companion. Check out walk.jog.fm to find great walking songs that will match your pace.
Have a Plan-B: Bad weather, allergies or other factors may limit your outdoor walking. If so, have a backup plan like walking at your local mall, buying a home treadmill or joining a health club.
Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Senior" book. The articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070.
YOUR PLAN
The Giving Bone by Mark Lail
That giving bone, the one connected to the heart, is susceptible to various diseases; selfishness, control or pride to name a few. For good health, one must exercise the giving bone often. Consistent tithing will keep it strong but even more effectively when combined with frequent additional gifts to the Lord and his people. Stewardship is the Lord's way of raising people, not money. Generous giving is a natural outgrowth of a life devoted to God and his son, Jesus Christ. As stewards, we recognize that God is the owner and giver of everything. We give, we exercise the giving bone, and the exercise makes us stronger. As Christians, we grow.
One of the privileges of being a Christian is the responsible care of his property. After the Lord gives a few decades of life including the privilege of working, earning, saving and giving, most Christians stand at the threshold of a great opportunity, the opportunity to make a life gift to the Kingdom of God. Of course this can happen through ordinary wills or trusts but the opportunities today are so much more diversified. Charitable Gift Annuities, for example, are like feeding vitamins to the giving bone! They offer the donor a current income stream in addition to the joy of legacy giving. Endowments provide the opportunity to exercise the giving bone even after the Christian's promotion to heavenly reward.
Peter encourages the early church to give generously. ?The end of all things is near. Therefore be alert and of sober mind so that you may pray. Above all, love each other deeply, because love covers over a multitude of sins. Offer hospitality to one another without grumbling. Each of you should use whatever gift you have received to serve others, as faithful stewards of God's grace in its various forms. If anyone speaks, they should do so as one who speaks the very words of God. If anyone serves, they should do so with the strength God provides, so that in all things God may be praised through Jesus Christ. To him be the glory and the power for ever and ever.? (1 Peter 4:7-11) That was a very different culture than ours but I doubt that Peter's message would change much if he were speaking directly to us today. We have been recipients of God's richest blessings so the expectation is that we will give richly from what we have received.
The giving bone really is connected to the heart bone. A healthy heart seeks to share rather than to hoard. A healthy heart trusts. A healthy heart gives!
WASHINGTON NEWS
Where Do Your Taxes Go?
The IRS collected $2.8 trillion in revenue in 2013. Individual taxes were the largest amount and were $1.32 trillion. Social insurance was $950 billion. Medicare hospital insurance was about $300 billion and Social Security and other payments were the balance of the social insurance revenue.
Corporate taxes amounted to $274 billion. The miscellaneous category included excise taxes, earnings on the Federal Reserve's massive portfolio of government bonds, estate and gift taxes and other revenue. It equaled $237 billion.
The federal government spent $3.5 trillion. The mandatory spending for Social Security, Medicare, unemployment insurance and other benefits programs was the largest amount. It equaled $2 trillion in 2013. Discretionary spending includes government agencies and the Department of Defense. It was a total of $1.2 trillion. The interest on the national debt was $200 billion. This sum reflects the current very low interest rates.
Total spending equaled 20.8% of the gross domestic product (GDP) for 2013. This is slightly higher than the 40 year average. Revenue was 16.7% of the economy and that is below the 40 year average. This revenue is below average even with the higher tax rates on upper-income taxpayers under the American Taxpayer Relief Act.
Federal debt continued to increase. The deficit the past five years has been well above the 40 year average of 4.1% of GDP. However, the 2013 deficit was 3.9% of the economy.
Most of the $17 trillion in debt continues to be held by the public, although a substantial portion is now owed by the government to the Social Security fund. The public debt is now 72% of the economy. The 40 year average public debt is 39% of the economy. In 2002 debt was 38% of the economy, so it has grown rapidly to 72% of the economy.
The CBO warned that there were potential problems with the large federal debt. It stated, “Debt could have serious negative consequences, including restraining long-term economic growth, giving policy makers less flexibility to respond to unexpected challenges, and eventually increasing the risk of a fiscal crisis.”
FINANCES
Stocks - Another Great Quarter for Netflix
Netflix, Inc. (NFLX), a leading provider of on-demand video streaming, announced its first quarter results on Monday, April 21. The company’s results beat expectations as the company announced a future price increase for its service.Netflix reported first quarter revenue of $1.27 billion versus expectations of $1.266 billion. The company earned $0.46 per share compared to analyst estimates of $0.41 per share. Investors were particularly pleased that Netflix’s first quarter earnings beat estimates.
In a letter to shareholders, Netflix CEO Reed Hastings and CFO David Wells had this to say, “We ended Q1 with over 48 million global members, and topped $1 billion in quarterly streaming revenue. We had higher domestic net additions than in Q1 2013, growing international success, and a big hit with Season 2 of House of Cards.”
The company’s streaming service added 4 million members during the quarter, close to 1 million more than the 3.05 million members added during the comparable period last year. With the addition, Netflix’s total streaming members exceeded 48 million, 12 million higher than at this same point a year ago.
Netflix had an impressive quarter, adding 4 million members for the second quarter in a row. The company is now approaching 50 million total members with hopes of someday catching up to HBO’s 130 million members. The company also announced that it has plans in the future to raise its current $7.99 per month streaming plan by $1 to $2 with a generous grandfathering timeline for current subscribers. Netflix said the price increase is necessary as the company looks to invest more into original programming like current hits House of Cards and Orange is the New Black. Unlike previous price increase attempts, investors were pleased with Netflix’s approach to this newest price increase. The stock closed up at $372.90, up 7% the day following the earnings announcement.
Netflix, Inc. (NFLX) shares ended the week at $322.08.
Apple Surges on Earnings Report
Apple Inc. (AAPL) announced its second quarter results on Wednesday, April 23. The results beat expectations, especially with regard to the company’s iPhone sales, even as iPad sales disappointed.Apple reported quarterly revenue of $45.6 billion for the quarter. This was a 4.6% increase over the $43.6 billion reported during the same period last year and higher than analysts’ estimates of $43.5 billion.
Apple CEO Tim Cook had this to say about the company’s results, “We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services. We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”
Net profit for the quarter was $10.2 billion or $11.62 per share. This was an increase of nearly 7.4% from the $9.5 billion or $10.09 per share reported during the comparable period last year. In addition, Apple’s quarterly net profit exceeded analysts’ estimates by nearly 12%.
Apple’s strong quarter surprised many and gave investors renewed faith in the company. That renewed faith was encouraged by six million more iPhone sales than expected. On the flip side, iPad sales sagged compared to the same quarter last year as competition from cheaper rivals led by Samsung took a bite out of Apple’s market share.
Concerns about iPad sales were dampened by Cook’s announcement that Apple plans to debut new products and services in the near future. This once again led to speculation regarding bigger screen iPhones, wearable devices and an integrated Apple TV. With Apple’s annual developer conference coming up in June, investors and consumers may soon get their first look at what Apple has in store for the future. Following the earnings release, Apple saw its stock price rise 8.4%.
Apple Inc. (AAPL) shares ended the week at $571.94.
Facebook’s Earnings Shatter Expectations
Facebook, Inc. (FB), provider of the Internet’s most popular social media site, announced its first quarter results on Wednesday, April 23. Facebook reported revenue and profits that shattered analysts’ expectations.Facebook reported first quarter revenue of $2.502 billion, a 72% increase over the $1.46 billion reported during the same period last year. Quarterly revenue was $140 million higher than pre-release estimates.
Mark Zuckerberg, Facebook founder and CEO, commented on the company’s huge quarter: “Facebook’s business is strong and growing, and this quarter was a great start to 2014. We’ve made some long term bets on the future while staying focused on executing and improving our core products and business. We’re in great position to continue making progress towards our mission.”
Net income for the quarter was $885 million. This was a 184% increase over the $312 million reported during the comparable period last year.
Facebook’s blockbuster quarter was aided by an 82% increase in the company’s advertising revenue, 59% of which came from mobile advertising. In the past, analysts have questioned whether Facebook could monetize the mobile market in the same way it had with the traditional computer market.
The company’s first quarter results squarely answered that question. The company also announced that its monthly active users reached 1.28 billion, close to half the world’s Internet population and a 15% increase from the same period last year. However, Facebook also revealed that advertising revenue from Instagram and video advertising won’t significantly contribute to overall revenue just yet. Facebook’s stock price fell close to 1% following the earnings announcement.
Facebook, Inc. (FB) shares ended the week at $57.71.
The Dow started the week of 4/21 at 16,409 and closed at 16,361 on 4/25. The S&P 500 started the week at 1,866 and closed at 1,863. The NASDAQ started the week at 4,105 and closed at 4,076.
Bonds - 30-Year Yield Reaches Nine Month Low
Treasury prices rose on Friday, April 25, pushing the 30-year bond yield to its lowest level in nine months. The catalyst for the move in Treasury prices was the ongoing tensions between Ukraine and Russia.Financial markets reacted Friday to President Barack Obama’s consultation with European leaders regarding further sanctions against Russia. Earlier, U.S. Secretary of State John Kerry accused Russian President Vladimir Putin of sidestepping his country’s commitment to reducing tensions in eastern Ukraine.
“If Russia continues in this direction, it will not just be a grave mistake, it will be an expensive one,” said Kerry, citing the effects of current sanctions on Russia. “It’s a preview of how the free world will respond.”
The brewing conflict in Ukraine drove the 10-year note yield down for a fifth straight day, pushing prices higher. As of early Friday morning, the 10-year note yield had fallen two basis points to 2.66%.
The 30-year bond yield fell one basis point to 3.44%, further exacerbating the gradual drop the yield has seen this year since it reached a 2014 high of 3.97% in January. The 3.44% yield on Friday was close to the lowest level it has seen since July 3 of last year. It is clear the Ukrainian crisis is driving global investors to the safety of U.S. government bonds, pushing yields down.
“The Ukraine issue continues to stoke the safety bid as it’s apparent that Putin is not backing off in any way, and as U.S. rhetoric gets stronger,” said Thomas di Galoma, Head of Fixed Income Rates at ED&F Man Capital Markets. “The market has been on high alert, and no one wants to be without safe assets headed into the weekend.”
Although investors continue to react to the simmering tensions in Ukraine, they will also be reacting to next week’s Federal Reserve meeting. Fed policy makers will meet April 29-30. Experts expect the Federal Open Market Committee to stay committed to their planned reduction in bond purchases as they continue to phase-out the program known as quantitative easing.
The 10-year Treasury note yield finished the week of 4/21 at 2.67% while the 30-year Treasury note yield finished the week at 3.44%.
CDs and Mortgages - Interest Rates Trend Upward
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, April 24. The results show mortgage rates rising this week following an upward trend in the 10-year Treasury note and reports of weak housing data.The 30-year fixed rate mortgage averaged 4.33% this week. This represents an increase from last week when the 30-year fixed rate mortgage averaged 4.27%.
This week, the 15-year fixed rate mortgage averaged 3.39%. This was an increase from last week when the 15-year fixed rate mortgage averaged 3.33%.
“Mortgage rates edged up following the uptick in the 10-year Treasury note late last week,” said Frank Nothaft, Vice President and Chief Economist at Freddie Mac. “Existing home sales were essentially flat with a 0.2% decline in March to a seasonally adjusted annual rate of 4.59 million. However, new home sales fell nearly 15% in March to an annual rate of 384,000, well below consensus.”
The money market fund finished the week of 4/21 at 0.4%. The 1-year CD finished at 0.7%.
-------Are you a Nazarene Legacy Partner (NLP)? The answer is “YES” if you have designated any gift to a Nazarene ministry in your will, bequest, or estate plan. This could be a tithe on your estate, an insurance beneficiary designation to your local church, college, global mission, or any other Nazarene ministry you support.
Send us your name and contact information by reply email and indicate “I am a Nazarene Legacy Partner” and we will add your name to our NLP honor roll. To model generosity inspires others to do the same. Thank you for your interest in gift planning. To access any of this updated financial and gift planning information, please select our website.
Church of the Nazarene Foundation
17001 Prairie Star Parkway, Suite 200
Lenexa, KS 66220 United States
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