Lenexa, Kansas, United States - Leaving a Lasting Legacy Through Planned Giving from the Global Church of the Nazarene Foundation for Saturday, 13 September 2014

Lenexa, Kansas, United States - Leaving a Lasting Legacy Through Planned Giving from the Global Church of the Nazarene Foundation for Saturday, 13 September 2014
Like many people, you may be interested in planned giving, but you want to know the facts and figures first.  I’d like to tell you about a feature of our website that will give you more specific information about your options. 
Our planned gift calculators will estimate the income and tax advantages of various ways to give.  After you enter your information, a short personalized presentation will pop up and explain the benefits to you.
Click on the links below to explore the benefits of these planned giving options:

Planned Gift Calculators

Gift Annuity
Benefit from excellent fixed payouts that are partly tax free plus charitable tax deduction.

Deferred Gift Annuity
Benefit from fixed payouts beginning at a date more than one year from the gift.

Charitable Annuity Trust
Receive high fixed payments with tax free sale plus charitable tax deduction.

Part Gift and Part Sale
Enjoy substantial cash and save 50%, 70% or even 100% of tax on gain.

Sale and Unitrust
Receive cash plus increased income from trust! Charitable tax deduction reduces tax on gain.

Charitable Unitrust
Enjoy increased income with tax free sale plus charitable tax deduction.

Thank you for taking the time to consider planned giving to support the ministries of your choice.
Blessings,
Kenneth R. Roney, J.D.
President
P.S. For more information on how to use your resources to support the future of your favorite ministry, please reply to this email  or contact us by phone at 913.577.2983..
PERSONAL PLANNER
Separate & Joint Property
"My brother Pete and I own a ranch together," said Joe to his advisor. "We inherited the four sections of our ranch from my mother. As a single person, I think that I will plan to leave 50% of my share to Pete and the other half to my favorite charity. Of course, if Pete dies, he is married and probably wants to leave his share to his spouse and children."
Do Pete and Joe need to review their estate plans? Yes! These two rancher brothers held title as joint tenants with right of survivorship. If the single brother (Joe) were to pass away, Pete would inherit his brother's half of the ranch. Even though Joe stated that half of his share should go to his favorite charity, nothing will be given to charity.
On the other hand, if the married brother (Pete) were to pass away, under the joint tenancy with right of survivorship rules the ranch now belongs in its entirety to Joe. Pete's spouse and children would have no benefit, with the exception of some states in which a forced spousal share might provide some relief.
Do you know how your property is owned? This can make a huge difference in your plan, just as it did for Pete and Joe. Property can be owned outright, as tenants in common, as joint tenants with right of survivorship or in a trust.
Outright Ownership
Joe is a single person and also owns a home in a small community close to the ranch. He has complete title to the property in his name. The legal term for owning property outright is "fee simple" title. Because Joe owns the property outright in his name, he is obligated to personally pay the taxes, mortgage interest and any other costs of maintaining the property. However, he has complete use of the property and may transfer it during life or through his estate to any person or charity.
Tenants in Common
With property held as tenants in common, each person has an undivided interest in his or her portion. For example, Pete and Joe could change the title to the ranch to tenants in common. Each would still own 50% of the entire ranch. The taxes, the mortgage payments or any other costs would be divided between the brothers. However, because the ranch is held as tenants in common, each person may make transfers of the property during life or through his estate. Joe could decide to leave 50% of his half to Pete and 50% to favorite charity. Pete could leave his 50% of the ranch to his spouse and children.
Joint Tenancy with Right of Survivorship
The property could be held jointly, but under state law the surviving tenant receives title to the property when the first passes away. For example, if Pete were to pass away while the property is held as joint tenants with right of survivorship, Joe then would own the entire ranch. Both Pete and Joe would pay their share of taxes and the mortgage during life, but the property is transferred by state law to the surviving joint tenant, not according to the will of the first to pass away. For anyone other than a surviving spouse, joint tenancy with right of survivorship may result in an accidental disinheritance.
Trusts
It is possible to transfer real estate and other assets into a trust. Each person deeds his or her portion into the trust. The trustee owns the entire property for the benefit of the income and remainder recipients. The trustee will manage the property, collect income and distribute it according to the terms of the trust document. A trust is especially useful if you own property in different states.
Therefore, it is very important to understand how your property is owned. When you are creating your estate plan or are considering a transfer or gift during life, you need to be certain that you first understand the ownership. Then you will be able to make a legal transfer to the intended beneficiary.
Many estate lawsuits have occurred because individuals thought they had the right to transfer property by will, but there was a joint tenancy with right of survivorship that transferred the property to a surviving owner. If one person receives under the will and another by right of survivorship, litigation is quite likely. By understanding the way in which your property is titled, you can be certain that your intentions are carried out according to your plan.
SAVVY LIVING
Generic Drugs Offer Big Savings
Are brand-name medications better than generic, and if not, why is there such a price difference? Also, how can I find out which medicines are available in generic form?
No. Brand-name medications are not better, safer or more effective than their generic alternatives because they’re virtually the same.
To gain approval from the U.S. Food and Drug Administration (FDA), generic drugs are required to use the same active ingredient, strength, dosage form and route of administration as their brand-name counterparts. The generic manufacturer must also demonstrate that people absorb the drug at the same rate.
The only difference between a brand-name drug and its generic counterpart is the name (generics are usually called by their chemical name), shape, color (U.S. trademark laws don’t allow generics to look exactly like their brand-name counterparts) and price of the drug. Generic drugs are often 10% to 30% cheaper when they first become available, but by the end of the first year the price can drop in half. And by the second and third year it can drop 70% to 90%.
Cost Difference
The reason generic drugs are so much cheaper is because their manufacturers don’t have the hefty start-up costs that the original creators of the drug do. When a pharmaceutical company creates a new drug, it spends millions of dollars on the research, development and clinical testing phases. Then, if it gets FDA approval, it has to turn around and spend even more money to market the drug to the health care industry and the public.
The total cost can rise into the hundreds of millions of dollars by the time the drug is in the hands of consumers.
In an effort to recoup their investment, the brand-name drug makers charge a premium price and are given a 20-year patent, which means that no other company can make or sell the drug during that period of time.
After those 20 years are up, however, other companies can apply to the FDA to sell generic versions. But because generic manufacturers don’t have the same research, development and marketing costs, they can sell their product much cheaper.
Also, once generic drugs are approved, there’s greater competition which drives the price down. Today, nearly 8 in 10 prescriptions filled in the United States are for generic drugs, which saves U.S. consumers around $3 billion every week.
New Generics
You should also know that in 2014 and 2015, patents on a wide variety of popular brand-name drugs will expire and become available in generic, including Celebrex, Copaxone, Actonel, Nexium, Exforge, Cymbalta, Lunesta, Avodart, Abilify, Evista, Maxalt, Maxalt MPT, Micardis, Micardis HCT, Reneagel, Twynata and Xeloda.
For more information, Community Catalyst, a national nonprofit consumer advocacy organization, provides a list on their website of the top 50 brand-name drugs and the dates they should become available as generics. Go to communitycatalyst.org, and type “Drugs Going Generic 2014 – 2015” in their search bar to find it.
You can also find out if a brand-name drug has a generic alternative by simply asking your doctor or pharmacist. Or, visit GoodRX.com, a Web tool that provides prices on brand-name drugs and their generic alternatives (if available) at virtually every pharmacy in the U.S. So you can find the best deals in your area.
Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These 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 Living, P.O. Box 5443, Norman, OK 73070.
YOUR PLAN
John and Orlene Pierson's Legacy
Heroes of generosity don't always have big bank accounts. For years, John Pierson drove a milk route and worked long hours. But he and his wife, Orlene, found time and energy to maintain their church facilities, call on those who were sick and homebound, and make a bold lead pledge in the capital campaign to build a new church facility.
It is as if the spirit of generosity was ingrained in the Piersons. One holiday morning their pastor, after bringing his wife home from the hospital to recuperate after major surgery, found John and Orlene waiting at his home with dinner. What a moving and appropriate gift of love for that clergy family.
John and Orlene were Nazarene Legacy Partners, modern day heroes who made a difference in advancing God's Kingdom. In the later stages of their lives, a member of the Nazarene Foundation staff visited the Piersons in their assisted living facility and was moved to tears as John tenderly cared for his wife who was in the late stages of Alzheimer's disease. Just a few weeks later, Orlene died.
Not long after this at 95 years old, John was playing his violin, sharing beautiful music with other senior adults. As he concluded the last chorus of "To God Be the Glory" where the lyrics state: "O come to the Father, thro" Jesus, the Son," this dear saint slumped over with a heart attack and died. One of his caregivers, who often tried to keep up with John on his afternoon strolls, said, "This was John's good-bye party."
Through the Piersons' Charitable Trust and Charitable Gift Annuities, the Church of the Nazarene Foundation was privileged to make significant distributions to the local church John and Orlene attended as well as to other Nazarene ministries that were near to the hearts of the Piersons.
Faithful people, such as the Piersons, who have modeled generous living and Christlike service, give us cause to offer thanks as Paul did when he wrote his letter to the Romans. 
Learn more about the many planned giving services the Foundation offers and how to leave a legacy gift to the ministries you love, contact the Church of the Nazarene Foundation and we will be happy to assist you.
Note: This is one in a series of articles for "Modeling Generosity" a series where Holiness Today partners with the Church of the Nazarene Foundation and other entities. Learn how God's people model generosity in their lives. Help inspire others to leave a lasting legacy by sending your stories, or the story of someone you know who lives generously, to info@nazarenefoundation.org.
WASHINGTON NEWS
House and Senate Tax Extender Meetings
With just two weeks in the brief September legislative session, the only major bill likely to be passed will be a continuing resolution. Rep. Harold Rogers (R-KY) introduced a bill this week to continue government operations from October 1 to December 11, 2014. This bill is expected to be passed during the shortened session.
However, Members of the House Ways and Means Committee and Senate Finance Committee have been meeting informally to discuss tax extenders. There will be no action taken until November in the lame duck session, but it is beneficial for both the House and Senate members to start the discussions.
The House has passed 10 extenders and two new charitable bills that would have permanent effect. The Senate EXPIRE Act has passed the Senate Finance Committee and would renew all 54 tax extenders for two years.
The plan by the House Ways and Means Committee is to pass the 12 permanent tax provisions and seek to move those through the November negotiations. At a meeting with the press, House Ways and Means Committee Member Charles Boustany Jr. (R-LA) stated, “We are hoping to try to get maybe a few of them made permanent.”
House tax staff suggest that the top priorities in the negotiation may be the research credit, Section 179 expensing and bonus depreciation. All of these provisions are believed to increase employment and lead to a stronger economy.
Ways and Means Committee Chair Dave Camp (R-MI) also expressed a preference for permanent passage. He stated, “My hope is to get as much permanent policy as possible. We are the only nation in the world with temporary tax policy, and it doesn’t work.”
Given the short available time in September, it is unlikely that there will be any other permanent tax extenders passed by the House. During the shortened session and the time between now and November, there may be additional informal House and Senate discussions on tax extenders.
Editor’s Note: Chairman Camp has positioned the House to negotiate for passage of some or all of the 12 permanent bills. The Senate clearly supports the concept of a two year extension for all 54 tax extenders. Nonprofit organizations hope that a compromise with some permanent tax extenders would include the IRA charitable rollover. The major question is whether or not the Senate negotiators will be willing to accept a compromise. Potentially, the House could negotiate to have most of the 12 extenders made permanent while the rest would only be extended for 2014 and 2015. The result of this negotiation may not be known until the end of November.
Nearly 12 Million Sec. 529 Plans
Each year the College Savings Plans Network publishes a report on Sec. 529 plans. The National Association of State Treasurers created the network to monitor these plans.
All states maintain a tax-advantaged Sec. 529 plan. Cash amounts up to five annual exclusions may be contributed to an account in one year. The funds grow tax-free and may be distributed tax-free to students for appropriate educational expenses. The account beneficiary is usually a child or a grandchild of the donor.
In September 2014, the “Mid-year Review of 529 Plan Activity” was published. It is a good picture of the current use of Sec. 529 plans to fund future education needs for children and grandchildren.
1. Investment Balance – There currently is $244.5 billion in the Sec. 529 plans. During the first six months of 2014, the total balance grew 7.6% or by $17.4 billion.
2. Accounts – The number of accounts grew from 11.1 million at the start of 2014 to 11.83 million by mid-year.
3. Account Size – The average size of a 529 plan grew 14.7% over the past 12 months to $20,671.
4. Contributions – Parents and grandparents are very interested in these plans because 44% of the accounts received an additional contribution during the first half of 2014.
Editor’s Note: Information on Sec. 529 plans is available on www.irs.gov, www.savingforcollege.com or www.collegesavings.org.
FINANCES
Stocks - Barnes & Noble Turning the Page 
Barnes & Noble, Inc. (BKS) announced its first quarter results on Tuesday, September 9. Despite a quarterly loss, the company’s results indicated improvements to its business model are succeeding.
Barnes & Noble reported revenue of $1.24 billion during the quarter. This was a 7% decrease from the $1.33 billion reported during the comparable period last year.
“We continued to improve our financial performance, while further executing on our strategic initiatives, including work on the proposed separation of the Barnes & Noble Retail and NOOK Media businesses,” said Barnes & Noble CEO Michael P. Huseby. “NOOK continued to reduce losses and launched its first co-branded tablet in partnership with Samsung, our first new tablet in almost two years.”
The company recorded a net loss of $28.4 billion or $0.56 during the quarter. This compared to a net loss of $87 billion or $1.56 per share during the same period last year.
Barnes & Noble has faced increasing difficulties the past few years as tablets and other e-reading devices have become more popular. The company developed its NOOK e-reader as a way to capitalize on the tablet trend, but its sales lagged behind those of Apple’s iPad and Amazon’s Kindle. The company has since spun off its NOOK business, which has cut losses for the company. In addition, Barnes & Noble has found success with game and toy sales, which rose 20% during the quarter.
Barnes & Noble, Inc. (BKS) shares ended the week at $23.84.
Krispy Kreme Needs More Glaze
Krispy Kreme Doughnuts, Inc. (KKD) announced its second quarter results on Tuesday, September 9. The company experienced a disappointing quarter that added to an already disappointing year.
Krispy Kreme’s revenues increased 6.9% during the quarter to $120.5 million. Company-owned same store sales increased 1.1%.
“A key priority going into the quarter was to regain top line momentum in our Company shops,” said Krispy Kreme President and CEO Tony Thompson. “And we did, by very strategically using promotional incentives and other marketing tools to increase traffic count and top line growth.”
Net income during the quarter was $5.8 million or $0.08 per share. This was a slight increase over the $4.7 million reported during the same period last year.
At this point last year Krispy Kreme was a remarkable comeback story with same-store sales growth of 10.5%. Some of the shine from that story has dissipated this year as the company’s results have failed to match expectations, driving the stock price down 13% on the year. Krispy Kreme continues to face difficulties capturing the attention of health conscious consumers. New CEO Tony Thompson hopes to improve results through an emphasis on increasing “every day” doughnut occasions for its products and an expanded beverage menu.
Krispy Kreme Doughnuts, Inc. (KKD) shares ended the week at $17.52.
Burlington Coats Itself In Success
Burlington Stores, Inc. (BURL), an off-price apparel retailer, announced its second quarter results on Tuesday, September 9. The company, which went public last October, reported revenue that beat expectations.
Burlington’s second-quarter sales increased 8.3% to $1.044 billion. This surpassed estimates calling for sales of $1.031 billion.
“We are extremely pleased with our second quarter performance highlighted by a 4.7% increase in comparable store sales on top of last year’s very strong 7.8% increase,” said Tom Kingsbury, President and CEO of Burlington Stores, Inc. “We believe we are well positioned for the fall season based on the level and currency of our inventory and remain focused on delivering great value, brands, store experience and fresh product to our customers every day.”
The company recorded a net loss during the quarter of $0.9 million. However, this was better than the larger net loss of $13.6 million recorded during the same period last year.
Burlington Stores is quickly closing in on the one-year anniversary of its public offering, which happened in October 2013. So far, the first year for Burlington has been a success and this most recent quarter confirmed that. Sales and earnings improved and the company raised its full-year guidance, projecting sales growth of 6.5% to 7.2% sales growth. As a result, Burlington’s share price rose 5% following the earnings announcement.
Burlington Stores, Inc. (BURL) shares ended the week at $38.10.
The Dow started the week of 9/8 at 17,132, and closed at 16,988 on 9/12. The S&P 500 started the week at 2,007 and closed at 1,986. The NASDAQ started the week at 4,579 and closed at 4,568.
Bonds - Treasuries Decline on Rate Speculation
Treasury prices fell on Friday, September 12, as speculation ramped up that the Federal Reserve could be changing course on its policy of keeping interest rates low for a “considerable time.” Treasury prices were left relatively unaffected by new economic data released on Friday.
The fall in Treasury prices on Friday, and the corresponding rise in yields, was in response to increased speculation this week regarding Federal Reserve interest rate policy. Rumors circulated that the Fed’s next report may delete a reference to interest rates remaining low for a “considerable time” after its bond buying program ends later this year. This has added fuel to prior speculation that the Federal Reserve is looking to raise its benchmark interest rate above its current 0 to 0.25% range sooner than expected.
Anticipation regarding the language change helped the benchmark 10-year yield reach its highest level since July, said Dan Mulholland, head of Treasury trading at BNY Mellon Capital Markets. “At the same time, we’re seeing pressure on global bond markets. There’s a possibility of the Fed moving earlier than previously expected based on expectations for growth,” he said.
During early Friday trading the 10-year yield rose four basis points to 2.58%. Treasury yields move inversely to prices, so as yields rise, prices fall.
Treasuries this week were also helped by European yields that continue to fall. The German 10-year yield increased four basis points on Friday to 1.08% while Japan’s 10-year yield added only one basis point to reach 0.57%. Though unchanged on Friday, Australia’s equivalent yield fell 14 basis points this week.
A pair of economic reports this week seemed to have little effect on Treasury prices. The Commerce Department revealed on Friday that August retail sales were in line with forecasts. August’s retail sales followed on the heels of a 0.3% increase in July that beat estimates.
The 10-year Treasury note yield finished the week of 9/8 at 2.61% while the 30-year Treasury note yield finished the week at 3.35%.
CDs and Mortgages - Interest Rates See Slight Increase
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, September 11. The results show mortgage rates increasing slightly in response to improving Treasury bond yields.
The 30-year fixed rate mortgage averaged 4.12% this week. This was an increase from last week when the 30-year fixed rate mortgage averaged 4.10%.
This week, the 15-year fixed rate mortgage averaged 3.26%. This was up from last week when the 15-year fixed rate mortgage averaged 3.24%.
Frank Nothaft, Vice President and Chief Economist at Freddie Mac, had this to say about this week’s rates: “Mortgage rates were up slightly this week, following the increase in 10-year Treasury yields, despite last week’s disappointing employment report. The U.S. economy added only 142,000 jobs in August, after a 212,000 gain in July and a 267,000 increase in June. The unemployment rate fell to 6.1% in August from 6.2% the previous month.”
The money market fund finished the week of 9/8 at 0.4%. The 1-year CD finished at 0.7%.
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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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