Lenexa, Kansas, United States - Model Generosity: Leave A Lasting Legacy Through Planned Giving of The Global Church of the Nazarene Foundation for Saturday, 27 September 2014

Lenexa, Kansas, United States - Model Generosity: Leave A Lasting Legacy Through Planned Giving of The Global Church of the Nazarene Foundation for Saturday, 27 September 2014

In our age, we must answer two difficult questions if we are to be good stewards of the resources which Christ has entrusted to us. Where should I give? How should I give?

The options available through planned giving may be right for you. Through the types of giving choices available, we can help you meet your personal, financial and estate planning goals.

Click on the links below to explore the benefits of these popular planned giving options.

Popular Giving Options

Endowment
An endowment provides ongoing funds for the ministry of your choice by distributing part of the income from the investment to the ministry on a continuing basis.

Charitable Gift Annuity
You transfer your cash or appreciated property to our organization in exchange for our promise to pay you fixed income (with rates based on your age) for the rest of your life.

Donor-Advised Fund
With a donor-advised fund, you can make gifts to charity during your lifetime and when you pass away, your children can carry on your legacy of giving.

Bequest
You designate our organization as the beneficiary of your asset by will, trust, or other instrument.

You can read about other planned giving options by clicking on this link.

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
Social Security
Linda asked, "When should I take my Social Security? I have a good income and have paid into Social Security for 40 years. Since I am now age 60, I understand that I can take payouts early at age 62. But my full benefits are not until age 66 because I am a baby boomer. And I hear that you can wait until age 70 to start payouts. But which is better?"
Social Security Benefits
The average American retires and receives Social Security to cover part of his or her retirement expenses. A typical Social Security payment replaces approximately 40% of your pre-retirement income. To qualify for Social Security, you need to have contributed to the fund for 40 quarters or 10 years. Your Social Security payout will be dependent on your highest earning years.
Early Payout at Age 62
Linda could join most Americans and start taking payments when she is age 62. Based on 2014 tables, her maximum payment would be $2,005 per month.
This amount will be adjusted every year based on the Social Security cost-of-living increase. However, she is receiving approximately 25% less than she would receive at her full retirement age of 66. While her benefit is adjusted for inflation, the actual value or purchasing power of this amount will not change. Linda's mother is still living and her grandmother lived to be 96, so she may be wise to plan for a fairly long retirement.
There is one other challenge for Linda. If she continues to work, and many individuals do work until their late 60s, she will lose part of her Social Security payment. For every $2 in income (over an indexed limit) she earns between age 62 and her full retirement age, she loses $1 in Social Security benefits. By taking her payment at age 62, she receives both a lower payout for her lifetime and reduced payments for the years until her full retirement age.
Full Payments at Age 66
In a political compromise back in the 1980s, Congress decided to slowly increase the age for full Social Security benefits from 65 to 67. For Linda and other baby boomers born between 1943 and 1954, the full Social Security retirement benefit is available at age 66.
Based on 2014 tables, Linda at age 66 would qualify for $2,642 per month. If she waits until she is age 66 to start payouts, she receives a larger amount than at age 62 and it will also be adjusted for inflation.
The favorable news for Linda is that she would receive this larger amount plus cost-of-living increases for her lifetime. In addition, if she works after age 66, there's no reduction in her Social Security payment. She can continue to receive the full income of her work and the Social Security benefit. Of course, because both she and her employer are contributing to the Social Security system while she is working, her actual Social Security benefit is significantly reduced. Her Social Security payout is taxed and her net after-tax benefit is approximately $1,780 per month.
But because she is employed, Linda is contributing about $600 per month of after-tax income to Social Security from her income. Her employer is also contributing a similar sum. The net Social Security benefit to her, after payment of income taxes on her contribution and the contribution by her employer from her salary, is now approximately $300 to $600 of added after-tax monthly income.
Delaying Payments to Age 70
If Linda continues with her present employment and does not need her Social Security income, she can receive an increased benefit by delaying the start of payments to age 70. The benefit starting at age 70 for Linda is $3,494 in current dollars. With inflation adjustments, Linda's benefit could be over $3,700 per month when she reaches age 70.
This represents a 34% increase over her normal retirement amount at age 66. The amount increases by about 8% per year because the government has held her funds longer and she has a shorter period of time to receive the payments, since the first payment is received at age 70.
If Linda lives to her mid 80s, then she will have received a greater total Social Security benefit. If she joins her long-lived relatives who have survived to their mid 90s, her net economic benefit from Social Security by delaying the first payouts to age 70 is dramatically greater than her total payouts starting at age 62 or 66.
Tax-free Social Security Payouts
Individuals with lower incomes do not pay any federal tax on Social Security. Generally, single people with incomes under $25,000 per year do not pay tax.
50% of Social Security Taxable
For many Social Security recipients, their income is in the middle range and 50% is taxable. For example, a single person with taxable income of approximately $25,000 to $34,000 would pay tax on half of his or her Social Security. The taxable income is called the modified adjusted gross income and includes adjustments for some types of tax-free income.
Because Linda has a substantial IRA, she expects to have a higher level of income.
85% of Social Security Taxable
With other pension income and IRA income, Linda anticipates a modified adjusted gross income of over $36,000 per year. As a result, 85% of her Social Security is taxable.
Linda is not very pleased with this plan. Because she already paid tax on her half of the Social Security, she feels that this is a very substantial tax. However, with the increasing need to fund Social Security in the future, the high probability is that Linda will pay tax on 85% of her Social Security during her lifetime.
Social Security for Spouses
A spouse may have different options for receiving Social Security. First, if he or she qualifies based on employment, then the best choice may be to take his or her normal benefit at the selected retirement age.
However, a surviving spouse can receive a reduced spousal benefit starting at age 60. At a later date they may transition to a full benefit under their own qualification. Former spouses may also receive benefits after age 62. 
SAVVY LIVING
Vaccination Options Available this Flu Season
I understand that there are several types of flu vaccines being offered this flu season. What can you tell me about them?
Depending on your health, age and preference there are a number of flu shots available this flu season, along with two vaccinations for pneumonia that you should consider as well.
Flu Shots Options
Just as they do every year, the Centers for Disease Control and Prevention (CDC) recommends a seasonal flu shot to almost everyone, but it is especially important for seniors who are at higher risk of developing serious flu-related complications. The flu puts more than 200,000 people in the hospital each year and kills around 24,000 people annually – 90% of whom are seniors. Below are several flu shot options available this year.
Standard (trivalent) Flu Shot: This tried-and-true shot has been around for more than 30 years and protects against three strains of influenza. This year’s version protects against the two common A strains (H1N1 and H3N2) and one influenza B virus.
Quadrivalent Flu Shot: This vaccine, which was introduced last year, protects against four types of influenza. It protects against the same three strains as the standard flu shot, plus an additional B-strain virus.
High-Dose Flu Shot (Fluzone High-Dose): Designed specifically for seniors age 65 and older, this vaccine has four times the amount of antigen as a regular flu shot. The increased antigen creates a stronger immune response for better protection. However, be aware that the high-dose option may also be more likely to cause side effects, including headache, muscle aches and fever.
Intradermal Flu Shot: If you don’t like needles, the intradermal shot is a nice option. This shot uses a 1/16-inch long micro-needle to inject the vaccine just under the skin rather than deeper in the muscle like standard flu shots. This trivalent vaccine is recommended only to those ages 18 to 64.
To locate a vaccination site that offers these flu shots, visit vaccines.gov and type in your ZIP code. If you are a Medicare beneficiary, Part B will cover 100% of the costs of any flu shot, as long as your doctor, health clinic or pharmacy agrees not to charge you more than Medicare pays. Private health insurers are also required to cover standard flu shots; however, you’ll need to check with your provider to see if they cover the other vaccination options.
Pneumonia Vaccines
The other important vaccinations the CDC recommends to seniors, especially this time of year, are the pneumococcal vaccines for pneumonia. An estimated 900,000 people in the U.S. get pneumococcal pneumonia each year and it kills around 5,000 of those infected.
This year, the CDC is recommending that all seniors 65 or older get two separate vaccines. The vaccines are Prevnar 13 and Pneumovax 23. Previously, only Pneumovax 23 was recommended for seniors.
Both vaccines, which are administered just once, work in different ways to provide maximum protection.
If you haven’t yet received any pneumococcal vaccine you should get the Prevnar 13 first, followed by Pneumovax 23 six to 12 months later. But, if you’ve already been vaccinated with Pneumovax 23 you should get Prevnar 13 at least one year later.
Medicare currently covers only one pneumococcal vaccine per older adult. If you’re paying out of pocket, you can expect to pay around $50 to $85 for Pneumovax 23 and around $120 to $150 for the Prevnar 13.
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
Tax-Free Sale
Howard and Lynn were age 55 when they purchased some land outside of town. They thought it would be a good investment that they could later sell for a higher price.
Over the years, development from town has moved toward the property and their land is now next to a large commercial store. They now rent the property to the commercial store for overflow parking.
Howard: We have owned this property for over 10 years. It has been a good investment and increased in value. We have received just enough rental income in the last few years to pay the taxes. However, we now would like to sell.
Lynn: It would be nice if we could sell without paying a large tax. Our tax advisor has told us that if we were to sell, there would be a large capital gains tax. We also could use some tax deductions this year.
The good news is that Howard and Lynn were able to create a special trust called a charitable remainder unitrust and receive three very nice benefits.
Bypass capital gain
Increase income
Charitable deduction
Howard: We are delighted with our unitrust. With our unitrust, we saved about $36,000 in capital gains tax and almost $18,000 in income taxes. That is over $54,000 in tax savings!
Lynn: Plus, we increased our income. The land was producing almost no income before. Now, we receive over $12,000 in income each year. This increased income is one of my favorite parts of the plan.
*Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your unitrust benefits may be different, you may want to click here to view a color example of your benefits. 
WASHINGTON NEWS
Tax Fraud Costs $5.2 Billion
A Government Accountability Office (GAO) report published on September 22 strongly urged IRS Commissioner John Koskinen to take bold action against tax refund fraud. There was an estimated $5.2 billion in fraud during the past year.
Several Congressional leaders responded with pointed requests to the IRS Commissioner and strongly advocated improved efforts to combat tax refund fraud.
Senate Finance Chair Ron Wyden (D-OR) noted, “This GAO report is an important step forward as it makes a number of important recommendations for verifying that taxpayers are getting the refunds they deserve and that the fraudsters don’t get them instead. I’m working closely with my colleagues here in the Congress and the IRS to fight this serious and growing problem that hurts both citizens and the integrity of our tax administration.”
The Ranking Member of the Senate Finance Committee is Orrin Hatch (R-UT). He also expressed the need for immediate action by stating, “As the GAO made clear today, there is more that can be done to improve the agency’s anti-fraud capabilities. Moving forward, I hope the IRS will take a serious look at these recommendations and work with Congress to implement smart safeguards that not only better serve the victims of identity theft refund fraud but, ultimately, stop it before it even starts.”
A center for the tax refund fraud problem has been the state of Florida. Sen. Bill Nelson (D-FL) has been very active in encouraging IRS and Department of Justice pursuit of fraudulent refunds. He stated, “This problem is not going away, unless we go hard after these criminals while also doing what we can to prevent this crime.”
House Ways and Means Chair Dave Camp (R-MI) observed that there have been obvious refund fraudsters who have not been quickly apprehended by the IRS. He noted, “In one case, the IRS received over 2,000 returns from a single address – paying out over $3.3 million in refunds. That is not just a simple error, that is clear mismanagement.”
Wyden and Hatch have introduced the Tax Refund Theft Prevention Act of 2014 (S.2736), which protects filers who have had their refund stolen. They note that while the cost of tax fraud is larger, taxpayers are also victimized by IRS impersonators.
Timothy Camus, Deputy Inspector General for Investigations at the Treasury Inspector General for Tax Administration, stated that “the volume of complaints received by TIGTA’s Complaint Hotline Center about this scam is unprecedented.” He noted that there have been 130,000 contacts with TIGTA complaining about IRS impersonators. The fraudulent impersonations resulted in individuals losing $8 million last year.
IRS Commissioner John Koskinen agreed that this is an increasing problem. He stated, “For some reason, impersonation scamming has grown this year. It has always been out there, but there is much more of it this year.”
FINANCES
Stocks - Nike Just Does It
Nike, Inc. (NKE) announced its first quarter results on Thursday, September 25. The company’s results got a huge boost thanks to the FIFA World Cup.
Nike reported that revenues for the quarter increased 15% to $7.98 billion. This surpassed pre-release estimates calling for revenues of $7.78 billion.
Nike President and CEO Mark Parker had this to say about the quarter: “Fiscal year 2015 is off to a strong start. Our connection to consumers and ability to innovate, combined with our powerful global portfolio, is a complete offense. Nike has never been better positioned to realize our tremendous growth potential.”
Net income during the quarter increased 23% to $962 million or $1.09 per share. Analyst estimates were for earnings per share of only $0.88.
Investors were incredibly pleased with Nike’s first quarter, which according to all measures surpassed expectations. A large part of the company’s quarterly success was attributed to the World Cup soccer tournament in Brazil that took place during the quarter. The World Cup is the world’s most watched sporting event and Nike used it as a platform to market its products. Following the earnings announcement Nike’s stock price rose over 7% in after-hours trading.
Nike, Inc. (NKE) shares ended the week at $89.50.
CarMax Powers to a Disappointing Quarter
CarMax, Inc. (KMX), a leading retailer of used cars, announced its second quarter results on Tuesday, September 23. Investors were disappointed as the company’s results fell below expectations.
CarMax announced that net sales during the quarter increased 10.9% to $3.6 billion, slightly ahead of estimates. However, comparable store sales increased only 0.2% during the quarter, which was less than the 2.7% estimate.
“We are pleased to report record second quarter results, even before considering the benefit of the settlement proceeds,” said CarMax President and CEO Tom Folliard. “The continued growth in our store base and improvements across our used, wholesale and CAF operations, as well as our share repurchase program, all contributed to our record second quarter earnings per share.”
The company reported net earnings during the quarter of $155 million. This was a 4.3% increase over the $140.3 million reported during the same period last year.
CarMax suffered a disappointing second quarter compared to the same period last year. During the second quarter of 2013 the company reported comparable unit sales increased 15.9%. This quarter’s 0.2% comparable unit sales fell far short of such an increase. In addition, CarMax’s net earnings during the quarter got a boost from settlement proceeds related to a class-action lawsuit. Without the settlement, CarMax’s earnings would have been below Wall Street expectations.
CarMax, Inc. (KMX) shares ended the week at $47.50.
AutoZone Misses the Zone
AutoZone, Inc. (AZO), an automotive parts and accessories retailer, announced its fourth quarter results on Monday, September 22. The company reported net sales growth that was much smaller than expected.
AutoZone reported that net sales during the fourth quarter increased 4.5% to $3.05 billion. This was slightly below estimates calling for net sales of $3.07 billion.
“We are pleased to report that the fourth quarter of fiscal 2014, on a 16 week adjusted basis, marked our thirty-second consecutive quarter of double digit earnings per share growth,” said AutoZone Chairman, President and CEO Bill Rhodes. “As we have routinely stated, we will remain committed to our disciplined approach to growing operating earnings and utilizing our capital effectively.”
Net income during the quarter increased 7.4% to $373.7 million. On an earnings per share basis, earnings increased 15.6% to $11.28 per share.
AutoZone has been one of the most reliable investments for investors, but this most recent quarter cast some doubt on that belief. Though the company saw sales and income increase, there were some concerns. Specifically, same-store sales increased 2.1%, which was the smallest increase in three quarters. In addition, the company still has some work to do when it comes to establishing a foothold in the commercial repair business. Currently the company has a 2% market share, something it will need to improve going forward.
AutoZone, Inc. (AZO) shares ended the week at $508.38.
The Dow started the week of 9/22 at 17,272 and closed at 17,114 on 9/26. The S&P 500 started the week at 2,009 and closed at 1,983. The NASDAQ started the week at 4,568 and closed at 4,541.
Bonds - Treasuries Fall on Exit of PIMCO’s Gross
Treasury prices fell on Friday, September 26 after Bill Gross, co-founder of Pacific Investment Management Co. or PIMCO, announced he would be leaving the firm to join Janus Capital. Gross has been one of the most bullish advocates for Treasuries in recent years.
Bill Gross’ unexpected departure from PIMCO surprised analysts and investors on Friday, especially since Gross co-founded the company. Gross’ departure was due to a claimed difference of opinion regarding the firm’s direction, but other sources claimed “erratic behavior” on the part of Gross was the cause.
The news of Gross’ departure cast doubt on the future stake that PIMCO will take in Treasury bonds. Even though Gross was one of the most bullish proponents of Treasuries, he had reduced the fund’s Treasury holdings from 50% in May to 41% in August. Many analysts have speculated his departure will lead PIMCO to reduce its Treasury holdings even further.
Aaron Kohli, an Interest-Rate Strategist at BNP Paribas, said the fear is that the next PIMCO bond managers won’t be as bullish as Gross. “He’s been the face of the bond market for some time. It’s hard to attribute the move in the market to anything else,” he said.
During early Friday trading the benchmark 10-year note yield rose 1.5 basis points to 2.53%. The 30-year bond yield rose 0.5 basis points to 3.22%.
The news of Gross’ departure overshadowed the finalized GDP report for the second quarter, which showed the U.S. economy growing at a 4.6% annualized rate during the quarter. This positive news seemed to have little impact on Treasury prices.
The 10-year Treasury note yield finished the week of 9/22 at 2.54% while the 30-year Treasury note yield finished the week at 3.22%.

CDs and Mortgages - Interest Rates Fall
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, September 25. The results show mortgage rates dropping this week on the release of housing data that reflected a mixed view of the housing recovery.
The 30-year fixed rate mortgage averaged 4.20% this week. This was a decrease from last week when it averaged 4.23%.
This week, the 15-year fixed rate mortgage averaged 3.36%. This was a slight decrease from last week when the 15-year fixed rate mortgage averaged 3.37%.
Frank Nothaft, Vice President and Chief Economist at Freddie Mac, had this to say about this week’s rates: “Mortgage rates were slightly changed with the rate on the 30-year fixed mortgage down three basis points. Meanwhile, existing home sales dropped 1.8% in August to a seasonally-adjusted annual rate of 5.05 million. Sales of new single-family homes surged 18.0% in August to an annual pace of 504,000 units. Also, the Federal Housing Finance Agency reported house prices rose just 0.1% on a seasonally-adjusted basis in July, and were up 4.4% over the past year.”
The money market fund finished the week of 9/22 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, Kansas 66220 United States
___________________________