Thousands of donors each year discover that with a little bit of planning, they can support ministry in ways and at a level they never imagined. For example, did you know that charitable giving could have the following benefits to you and your family?
Bypass capital gains tax
Increase income to yourself
Create income tax deductions now for gifts that occur at a later time
Charitable giving options can be complex and confusing, but we try to make it easy and understandable.
To learn more, see our resources for individuals. Or, contact us at 913.577.2983 orinfo@nazarenefoundation.org. To read more about our services, visitwww.NazareneFoundation.org.
Blessings,
Kenneth R. Roney, J.D.
President
Gifts of Homes
Most families purchase their largest personal residence in their mid-forties. Families with children often need the additional space. Other families think they want to purchase a home that they can enjoy for many years.
By the time you reach retirement age, you probably have an empty nest. The children or other family members have now moved on and are creating their own homes. Some individuals at that point decide they like their home in their neighborhood and would like to stay there for their lifetime. Others might want to sell the larger property and move to a condo or retirement community.
Stay-at-Home Sam
Sam is a single person and enjoys his home. He bought the residence when he was 48 because he loved the neighborhood.
Sam has cheerfully planted shrubs and flowers on his lot. He loves to spend time outside taking care of the property. Sam enjoys the neighborhood and plans to live there for the rest of his life. He just turned 75 this year and is in very good health.
He has a pension from his company, his Social Security and an IRA that was created by rolling over a qualified retirement plan. With income from all three sources, Sam now has no deductions other than his charitable gifts and is paying very substantial income taxes. As a result, he is very interested in finding a way to reduce his tax burden.
Sam bought the home for $200,000. It now has increased in value to $450,000. Sam also has been a regular supporter of two community charities that assist young people. He would like to eventually leave his home to charity to benefit youth in his community.
Sam Decides to Visit With His CPA Jim.
Sam: "You know, Jim, I've lived in my home for many years and I like it here. I live in a great neighborhood and I know these neighbors. So I would like to stay here, but as you know, I keep paying more and more income tax each year. It would be great to have a way to save some taxes and eventually pass the home to charity."
Jim: "Yes, we've talked several times about different ideas to save taxes. Since you like your home and would like eventually to transfer it to a charity, there is a way that you could save a large amount of taxes today. The gift plan is called a transfer with a life estate. You deed the right to own the home after you pass away to your favorite two charities and retain the right to live there for your lifetime. Based on your age and home value, you would receive a charitable deduction of around $250,000. This would save taxes for you over as many as the next five years. In fact, with some cash gifts plus this deduction, you could cut your tax bill in half."
Sam: "Cutting my taxes in half is a great idea. And I do want to help these young people through these charities eventually. But what if 10 years from now I want to move to a retirement community? What happens then?"
Jim: "There are some rollover options at that time. Each year, as you get older, the value of the life interest goes down slightly. Still, you will have a substantial value. You could later have a joint sale with the charity and receive your portion for the life interest in cash. Another option is to transfer your life interest portion to the charity in exchange for a gift annuity."
Sam: "This sounds like a great plan. Let's contact the gift planner at my favorite charity to get the ball rolling."
Clara Buys a Condo
Clara and Frank were married for 58 years. Frank passed away two years ago, leaving Clara and their three children who are now all adults.
When Clara and Frank were both 43, they bought a four-bedroom home. With two parents and three children at home, the atmosphere was very lively and eventful. When Clara and Frank reached their 50s, the children moved out and now are raising their own families.
Clara and Frank bought the home for $200,000. It is in a very nice neighborhood and has appreciated over the years to $800,000 in value. Clara decided to sit down with her CPA, Alice, to discuss the possibility of selling her home and moving to a condo.
Clara: "You know, Alice, Frank and I really needed the large house when the three children were at home. With five of us, we filled that four-bedroom house and there were always friends of our children visiting overnight. But now, with Frank gone and the children on their own, I don't need that big four-bedroom house. In fact, it's becoming a burden to maintain it. I would be much happier in a nice two-bedroom condo. I have been looking around and I think I have found one for $300,000 that would be just right for me."
Alice: "Yes, we all get to a point where it may make good sense to downsize. With the initial purchase price of your home and then an increase in basis when Frank passed away, you have a basis of about $400,000 in your home. If you were to sell it for $800,000, the gain would be $400,000. You would use your $250,000 exclusion for sale of your principal residence and $150,000 would be taxable."
Clara: "Well, I am not sure I want to pay tax on that much gain. I was thinking about making a gift to the charity that Frank and I have always supported. They are building a new wing on one of their facilities, and Frank and I had always talked about making a gift large enough that it could be named in our honor."
Alice: "How much is the naming opportunity?"
Clara: "It is a fairly large gift proposal and yet there is the value in the home. Plus, I have an IRA and other investments. The gift opportunity is $100,000. I was thinking that I could give 1/8 of the value of the home to the charity. The remaining $700,000 would more than cover the condo, plus I could add $400,000 to my current CDs."
Alice: "That actually works quite well. With your $250,000 exclusion, it reduces the taxable gain on your $700,000 home sale of your part to $100,000. If we transfer the 1/8 by deed to the charity just before the sale, you will bypass tax on the $100,000 and have a charitable deduction. The tax savings on your charitable deduction will more than offset the tax payable on your gain. You will end up with no tax on this transfer and $700,000 cash. After you buy the condo for $300,000, you are exactly right that you will have $400,000 to add to your CDs or other investments."
Clara: "That looks like exactly the right solution. Let's contact my attorney Bill and we will set up the gift. We can also list the home and find a buyer. I'm very excited about moving to the new condo in this retirement community. There are several friends from my social group in that community and I know I will enjoy living there."
SAVVY LIVING
Simplified Smartphone Options for Tech-Shy Seniors
By the time you reach retirement age, you probably have an empty nest. The children or other family members have now moved on and are creating their own homes. Some individuals at that point decide they like their home in their neighborhood and would like to stay there for their lifetime. Others might want to sell the larger property and move to a condo or retirement community.
Stay-at-Home Sam
Sam is a single person and enjoys his home. He bought the residence when he was 48 because he loved the neighborhood.
Sam has cheerfully planted shrubs and flowers on his lot. He loves to spend time outside taking care of the property. Sam enjoys the neighborhood and plans to live there for the rest of his life. He just turned 75 this year and is in very good health.
He has a pension from his company, his Social Security and an IRA that was created by rolling over a qualified retirement plan. With income from all three sources, Sam now has no deductions other than his charitable gifts and is paying very substantial income taxes. As a result, he is very interested in finding a way to reduce his tax burden.
Sam bought the home for $200,000. It now has increased in value to $450,000. Sam also has been a regular supporter of two community charities that assist young people. He would like to eventually leave his home to charity to benefit youth in his community.
Sam Decides to Visit With His CPA Jim.
Sam: "You know, Jim, I've lived in my home for many years and I like it here. I live in a great neighborhood and I know these neighbors. So I would like to stay here, but as you know, I keep paying more and more income tax each year. It would be great to have a way to save some taxes and eventually pass the home to charity."
Jim: "Yes, we've talked several times about different ideas to save taxes. Since you like your home and would like eventually to transfer it to a charity, there is a way that you could save a large amount of taxes today. The gift plan is called a transfer with a life estate. You deed the right to own the home after you pass away to your favorite two charities and retain the right to live there for your lifetime. Based on your age and home value, you would receive a charitable deduction of around $250,000. This would save taxes for you over as many as the next five years. In fact, with some cash gifts plus this deduction, you could cut your tax bill in half."
Sam: "Cutting my taxes in half is a great idea. And I do want to help these young people through these charities eventually. But what if 10 years from now I want to move to a retirement community? What happens then?"
Jim: "There are some rollover options at that time. Each year, as you get older, the value of the life interest goes down slightly. Still, you will have a substantial value. You could later have a joint sale with the charity and receive your portion for the life interest in cash. Another option is to transfer your life interest portion to the charity in exchange for a gift annuity."
Sam: "This sounds like a great plan. Let's contact the gift planner at my favorite charity to get the ball rolling."
Clara Buys a Condo
Clara and Frank were married for 58 years. Frank passed away two years ago, leaving Clara and their three children who are now all adults.
When Clara and Frank were both 43, they bought a four-bedroom home. With two parents and three children at home, the atmosphere was very lively and eventful. When Clara and Frank reached their 50s, the children moved out and now are raising their own families.
Clara and Frank bought the home for $200,000. It is in a very nice neighborhood and has appreciated over the years to $800,000 in value. Clara decided to sit down with her CPA, Alice, to discuss the possibility of selling her home and moving to a condo.
Clara: "You know, Alice, Frank and I really needed the large house when the three children were at home. With five of us, we filled that four-bedroom house and there were always friends of our children visiting overnight. But now, with Frank gone and the children on their own, I don't need that big four-bedroom house. In fact, it's becoming a burden to maintain it. I would be much happier in a nice two-bedroom condo. I have been looking around and I think I have found one for $300,000 that would be just right for me."
Alice: "Yes, we all get to a point where it may make good sense to downsize. With the initial purchase price of your home and then an increase in basis when Frank passed away, you have a basis of about $400,000 in your home. If you were to sell it for $800,000, the gain would be $400,000. You would use your $250,000 exclusion for sale of your principal residence and $150,000 would be taxable."
Clara: "Well, I am not sure I want to pay tax on that much gain. I was thinking about making a gift to the charity that Frank and I have always supported. They are building a new wing on one of their facilities, and Frank and I had always talked about making a gift large enough that it could be named in our honor."
Alice: "How much is the naming opportunity?"
Clara: "It is a fairly large gift proposal and yet there is the value in the home. Plus, I have an IRA and other investments. The gift opportunity is $100,000. I was thinking that I could give 1/8 of the value of the home to the charity. The remaining $700,000 would more than cover the condo, plus I could add $400,000 to my current CDs."
Alice: "That actually works quite well. With your $250,000 exclusion, it reduces the taxable gain on your $700,000 home sale of your part to $100,000. If we transfer the 1/8 by deed to the charity just before the sale, you will bypass tax on the $100,000 and have a charitable deduction. The tax savings on your charitable deduction will more than offset the tax payable on your gain. You will end up with no tax on this transfer and $700,000 cash. After you buy the condo for $300,000, you are exactly right that you will have $400,000 to add to your CDs or other investments."
Clara: "That looks like exactly the right solution. Let's contact my attorney Bill and we will set up the gift. We can also list the home and find a buyer. I'm very excited about moving to the new condo in this retirement community. There are several friends from my social group in that community and I know I will enjoy living there."
SAVVY LIVING
Simplified Smartphone Options for Tech-Shy Seniors
I'm interested in getting my 72-year-old mother a smartphone, but want to get one that's very easy for her to use. What can you recommend?
There are several different ways you can go about getting your mom a simplified smartphone that's easy for her to use. Depending on how much you're willing to spend, here are some different options to consider.
Simplify a Used Phone
The cheapest way to set your mom up with an easy-to-use smartphone is to purchase a used android phone and install a senior-friendly "launcher app" on it. This app will provide a user interface that is simple and easy to use.
A senior-friendly launcher app will simplify the phone's user interface by providing features such as large understandable icons for commonly used items (e.g. phone, text messaging, camera, contacts, etc.) and no excess clutter. Most launchers can also be customized to fit your mom's needs and preferences.
There are a variety of launcher apps available today that provide this type of technology and are completely free to use. Some popular options include, Necta Launcher (launcher.necta.us), Wiser (wiser-me.com), Seniors Phone (seniorsphone.mobi), Fontrillo (fontrillo.com) and Big Launcher (biglauncher.com) that also offers an upgraded version for $9.
If you have an old Apple iPhone that you'd like to convert, check out Silverline Mobile (silverline.mobi) that converts both Apple and androids for free.
Purchase a New Phone
If you're interested in purchasing your mom a new smartphone, you have options here too. For starters, you could purchase a smartphone that's specifically designed for seniors such as GreatCall's Touch3 ($150 with no contract at greatcall.com or 800-918-8543). The Touch3 is an android phone made by Samsung that has a 4-inch touchscreen and provides a simple menu list to often-used features like the phone, text messages, camera, pictures, email, the Internet, contacts and apps.
It also offers a variety of health and safety features such as the "5Star app" that would allow your mom to speak with a certified agent 24/7. If your mom needs help, the agent can identify her location and provide the help she needs. "Urgent Care" is another health and safety app that provides access toregistered nurses and doctors for advice and diagnoses. Finally, "MedCoach" is an app that sends medication reminders.
Another option is to purchase a standard smartphone that provides a built-in "Easy Mode" or "Simple" feature in the phone's settings. Like the launcher app, this built-in application would convert the phone's interface to one with simpler features such as large and well-labeled icons to commonly-used functions.
Samsung Galaxy smartphones include a built-in "Easy Mode" or "Simple" feature. These phones are available through most cell phone carriers at prices typically ranging between $400 and $850 without a contract. The Huawei Vision 2 and Huawei Ascend Mate 2 also have this Easy Mode option and are more budget-friendly. You can purchase these phones as unlocked phones or through Consumer Cellular(consumercellular.com, 888-345-5509) for only $80 or $225 without a contract. Consumer Cellular is a top-rated no-contract service provider that also offers discounts to AARP members.
A nice advantage of getting your mom a new smartphone is that if she masters the Easy Mode (or gets bored with it) and is ready to expand her skills, you can always switch the phone back to the standard operation mode. You can also add any number of health and safety features to her phone, similar to what the Touch3 offers, by downloading their apps at greatcall.com/medical-apps.
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 Retirement Unitrust
There are several different ways you can go about getting your mom a simplified smartphone that's easy for her to use. Depending on how much you're willing to spend, here are some different options to consider.
Simplify a Used Phone
The cheapest way to set your mom up with an easy-to-use smartphone is to purchase a used android phone and install a senior-friendly "launcher app" on it. This app will provide a user interface that is simple and easy to use.
A senior-friendly launcher app will simplify the phone's user interface by providing features such as large understandable icons for commonly used items (e.g. phone, text messaging, camera, contacts, etc.) and no excess clutter. Most launchers can also be customized to fit your mom's needs and preferences.
There are a variety of launcher apps available today that provide this type of technology and are completely free to use. Some popular options include, Necta Launcher (launcher.necta.us), Wiser (wiser-me.com), Seniors Phone (seniorsphone.mobi), Fontrillo (fontrillo.com) and Big Launcher (biglauncher.com) that also offers an upgraded version for $9.
If you have an old Apple iPhone that you'd like to convert, check out Silverline Mobile (silverline.mobi) that converts both Apple and androids for free.
Purchase a New Phone
If you're interested in purchasing your mom a new smartphone, you have options here too. For starters, you could purchase a smartphone that's specifically designed for seniors such as GreatCall's Touch3 ($150 with no contract at greatcall.com or 800-918-8543). The Touch3 is an android phone made by Samsung that has a 4-inch touchscreen and provides a simple menu list to often-used features like the phone, text messages, camera, pictures, email, the Internet, contacts and apps.
It also offers a variety of health and safety features such as the "5Star app" that would allow your mom to speak with a certified agent 24/7. If your mom needs help, the agent can identify her location and provide the help she needs. "Urgent Care" is another health and safety app that provides access toregistered nurses and doctors for advice and diagnoses. Finally, "MedCoach" is an app that sends medication reminders.
Another option is to purchase a standard smartphone that provides a built-in "Easy Mode" or "Simple" feature in the phone's settings. Like the launcher app, this built-in application would convert the phone's interface to one with simpler features such as large and well-labeled icons to commonly-used functions.
Samsung Galaxy smartphones include a built-in "Easy Mode" or "Simple" feature. These phones are available through most cell phone carriers at prices typically ranging between $400 and $850 without a contract. The Huawei Vision 2 and Huawei Ascend Mate 2 also have this Easy Mode option and are more budget-friendly. You can purchase these phones as unlocked phones or through Consumer Cellular(consumercellular.com, 888-345-5509) for only $80 or $225 without a contract. Consumer Cellular is a top-rated no-contract service provider that also offers discounts to AARP members.
A nice advantage of getting your mom a new smartphone is that if she masters the Easy Mode (or gets bored with it) and is ready to expand her skills, you can always switch the phone back to the standard operation mode. You can also add any number of health and safety features to her phone, similar to what the Touch3 offers, by downloading their apps at greatcall.com/medical-apps.
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 Retirement Unitrust
Mary grew up on a farm. When her parents passed away, she inherited the farm.
When Mary was growing up, the farm was out in the country. Now that the city has grown, the farm is within the city limits. Several developers would like to build homes on the farmland.
Mary: We have received modest payments from the farm over the years. I allowed a neighboring farmer to graze his cows on the farm until recently. Since I inherited the farm from my parents several years ago, the value of the farm has greatly increased.
Bill: We checked with our tax advisor and the farm could be sold, but there would be a very large tax to pay. Since it is a good time to sell the land, we would like to sell. And then it would be good to let the sale proceeds grow for about 10 years until we plan to retire. In fact, we are hopeful that we can sell tax freeand then allow the proceeds to grow tax free.
Mary: I was excited to learn from our tax advisor that there is a plan that does provide for ourretirement. She explained that we could transfer the land into a special trust. Once inside this trust, the farm could be sold tax free and the cash invested for growth. The proceeds would grow tax free inside the trust until we retire. At that time, the payouts would be taxable, but we could have as much as $900,000 in the trust.
Bill: We will enjoy a very nice retirement. We already have an IRA and are planning to use that for retirement. With the extra income from this retirement trust, we will be able to travel and really enjoy our golden years.
*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
"I-Am-From-The-IRS" Phone Fraud
When Mary was growing up, the farm was out in the country. Now that the city has grown, the farm is within the city limits. Several developers would like to build homes on the farmland.
Mary: We have received modest payments from the farm over the years. I allowed a neighboring farmer to graze his cows on the farm until recently. Since I inherited the farm from my parents several years ago, the value of the farm has greatly increased.
Bill: We checked with our tax advisor and the farm could be sold, but there would be a very large tax to pay. Since it is a good time to sell the land, we would like to sell. And then it would be good to let the sale proceeds grow for about 10 years until we plan to retire. In fact, we are hopeful that we can sell tax freeand then allow the proceeds to grow tax free.
Mary: I was excited to learn from our tax advisor that there is a plan that does provide for ourretirement. She explained that we could transfer the land into a special trust. Once inside this trust, the farm could be sold tax free and the cash invested for growth. The proceeds would grow tax free inside the trust until we retire. At that time, the payouts would be taxable, but we could have as much as $900,000 in the trust.
Bill: We will enjoy a very nice retirement. We already have an IRA and are planning to use that for retirement. With the extra income from this retirement trust, we will be able to travel and really enjoy our golden years.
*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
"I-Am-From-The-IRS" Phone Fraud
At a Senate Finance Committee hearing on March 12, the Treasury Inspector General for Tax Administration Deputy Inspector General for Investigations, Timothy Camus, explained the growth of an IRS "phone impersonation scam." Camus called the "I-am-from-the-IRS" phone fraud the "largest, most persuasive impersonation scam in the history of our agency."
The scam usually starts with a fraudster using a fake name who calls a victim. The fraudster gives a false "badge number" and claims the victim owes taxes. The scammer frightens the victim by claiming there is criminal liability without an immediate payment.
The threats from the fraudster usually lead to a demand that the victim make a payment using a debit card. Typical threats include the following:
In many cases a victim listens to a caller who demands immediate payment with a debit card. The victim typically then goes to a financial institution and obtains a debit card. The fraudster calls back and demands the numbers from the debit card. Those numbers are then used by the fraudster to obtain the funds.
The IRS reports receiving 9,000 to 12,000 reports weekly of the phone fraud attempts. Most of the recorded 3,052 victims this year were vulnerable persons or seniors. Documented 2015 losses total $15.5 million. Many individuals sustained a loss of $5,000, but one person lost $500,000.
The top five states for major losses include California ($3,840,000), New York ($1,352,732), Texas ($795,884), Florida ($760,000) and Virginia ($648,363).
Ellen Klem from the Oregon Department of Justice, Office of the Oregon Attorney General, also testified. She shared the story of a victim named "Diane." Diane lived in a small town in Oregon and is in her mid-fifties. When the fraudster threatened her with an 18 month prison sentence and a $25,000 fine, she was terrified. Panic-stricken, she withdrew $15,000 from her savings and placed it on a debit card. She lost the $15,000 to the fraudster.
Camus emphasized that there are specific IRS policies and procedures that are designed to protect taxpayers from phone fraud.
1. Payments to the IRS - The Service will always send a letter requesting payment. The IRS will notstart the process with a phone call.
2. Appeal - A taxpayer always has a right to appeal an IRS demand for payment to a higher level of authority.
3. Payment Methods - The taxpayer may pay by check or other methods. You will not be required to use only a debit card for payment.
4. Credit Card Numbers - The IRS will never ask for a credit card number over the phone.
5. Arrest - The IRS will not threaten taxpayers with immediate arrest by the local police.
If you think that a caller is a tax fraudster, call the IRS TIGTA hotline at 800-366-4484 or report the incident on www.tigta.gov.
FINANCES
The scam usually starts with a fraudster using a fake name who calls a victim. The fraudster gives a false "badge number" and claims the victim owes taxes. The scammer frightens the victim by claiming there is criminal liability without an immediate payment.
The threats from the fraudster usually lead to a demand that the victim make a payment using a debit card. Typical threats include the following:
"If you fail to pay now, you will be arrested."
"If you hang up, the police will be at your home in one hour."
"You must pay or you will be deported."
"You must pay now or you will lose your driver's license."
"Pay today or you will be a defendant in a lawsuit."
The fraudsters will often make repeated calls at all hours of the day and night. They will leave "urgent" voicemail requests.In many cases a victim listens to a caller who demands immediate payment with a debit card. The victim typically then goes to a financial institution and obtains a debit card. The fraudster calls back and demands the numbers from the debit card. Those numbers are then used by the fraudster to obtain the funds.
The IRS reports receiving 9,000 to 12,000 reports weekly of the phone fraud attempts. Most of the recorded 3,052 victims this year were vulnerable persons or seniors. Documented 2015 losses total $15.5 million. Many individuals sustained a loss of $5,000, but one person lost $500,000.
The top five states for major losses include California ($3,840,000), New York ($1,352,732), Texas ($795,884), Florida ($760,000) and Virginia ($648,363).
Ellen Klem from the Oregon Department of Justice, Office of the Oregon Attorney General, also testified. She shared the story of a victim named "Diane." Diane lived in a small town in Oregon and is in her mid-fifties. When the fraudster threatened her with an 18 month prison sentence and a $25,000 fine, she was terrified. Panic-stricken, she withdrew $15,000 from her savings and placed it on a debit card. She lost the $15,000 to the fraudster.
Camus emphasized that there are specific IRS policies and procedures that are designed to protect taxpayers from phone fraud.
1. Payments to the IRS - The Service will always send a letter requesting payment. The IRS will notstart the process with a phone call.
2. Appeal - A taxpayer always has a right to appeal an IRS demand for payment to a higher level of authority.
3. Payment Methods - The taxpayer may pay by check or other methods. You will not be required to use only a debit card for payment.
4. Credit Card Numbers - The IRS will never ask for a credit card number over the phone.
5. Arrest - The IRS will not threaten taxpayers with immediate arrest by the local police.
If you think that a caller is a tax fraudster, call the IRS TIGTA hotline at 800-366-4484 or report the incident on www.tigta.gov.
Stocks - El Pollo Loco's Growth Isn't Crazy
El Pollo Loco Holdings, Inc. (LOCO) announced its fourth quarter and year-end results on Thursday, March 12. The company reported across-the-board growth during the quarter.
El Pollo Loco reported quarterly revenue of $90 million and full-year revenue of $344.9 million. For the quarter, revenue increased 11.9% driven by comparable store sales growth of 7.6%.
"We are pleased to have closed out fiscal 2014 with another strong quarter of sales and earnings growth," said El Pollo Loco President and CEO Steve Sather. "Our system-wide comparable restaurant sales growth of 7.6% marked our 14th consecutive quarter of positive comparable restaurant sales growth, as our unique 'QSR-plus' positioning, compelling value proposition, and broad menu offerings anchored by our signature fire-grilled chicken, continue to resonate with customers."
Net income for the quarter was $4.6 million compared to a net loss of $18.1 million during the same period last year. On a full-year basis, net income was $42.5 million compared to a net loss of $16.9 million the year before.
El Pollo Loco went public in July of 2014 and quickly became an investor favorite. Investors were initially too exuberant, pushing the IPO price of $15 per share to $42 per share before it settled down in the $20 range. The company's fourth quarter earnings helped reinforce why investors are excited about the company. El Pollo Loco demonstrated both quarterly and annual sales growth of at least 7%. That is impressive considering rival companies like KFC are struggling. During early Friday trading on March 13 El Pollo Loco's share price rose 12%.
El Pollo Loco Holdings, Inc. (LOCO) shares ended the week at $27.04.
Krispy Kreme's Earnings Aren't So Sweet
Krispy Kreme Doughnuts, Inc. (KKD) reported its fourth quarter and full-year results on Wednesday, March 11. Overall, the company's results disappointed investors for both the quarter and the full-year.
Krispy Kreme reported quarterly revenue of $125.4 million and full-year revenue of $490.3 million. Both numbers were increases from the comparable periods, but still fell shy of pre-release estimates.
"This past year, we increased adjusted net income by nearly 12%, significantly outpacing our almost 7% revenue growth, and completed our sixth consecutive year of positive same-store sales at Company stores," said Krispy Kreme President and CEO, Tony Thompson. "We are growing again in a disciplined and sustainable manner with a variety of shop formats designed to meet individual market needs. We continue to refine and improve our model to better meet consumer needs and deliver outstanding financial returns."
Net income during the quarter rose 36.4% to $11.4 million or $0.17 per share, which was on par with pre-release estimates. For the full-year, net income rose 11.6% to $48.3 million or $0.70 per share, which missed estimates by $0.02 per share.
Investors' love affair with Krispy Kreme has been hot and cold over the past decade. The stock was once a Wall Street darling in the early 2000s, but management missteps and shifts in consumer tastes brought the stock price crashing to earth. A couple of years ago the company was in the midst of a comeback, impressing investors with its ability to once again generate strong sales and earnings growth. The stock price reached a high of around $26 per share in November 2013 before a series of underwhelming earnings reports diffused some of the investor enthusiasm. The company's fiscal 2015 was solid, though not up to the expectations investors had for the company.
Krispy Kreme Doughnuts, Inc. (KKD) shares ended the week at $19.33.
Dollar General Looks in Command
Dollar General Corporation (DG) announced its fourth quarter and full-year results on Thursday, March 12. Along with strong results during the year, the company announced ambitious growth plans that excited investors.
Net sales during the quarter were $4.94 billion and for the full-year were $18.9 billion. Both figures were increases over the comparable periods and were helped by quarterly and full-year sales growth of 4.9% and 2.8%, respectively.
"In 2014, momentum built in our business as we moved through the year, marking our twenty-fifth year of consecutive same-store sales growth," said Dollar General Chairman and CEO, Rick Dreiling. "We are pleased with our fourth quarter results which reflect accelerating same-store sales and we intend to capitalize on that momentum as we move into 2015."
The company reported net income during the quarter of $355 million compared to $322 million in the same period last year. For the full-year net income was $1.07 billion, which was an increase over the prior year's $1.03 billion.
Dollar General is in a stronger position than its rivals Family Dollar and Dollar Tree, both of which are working on a possible merger. Following a successful 2014, Dollar General announced ambitious growth plans for 2015 and 2016. The company plans to open 730 stores in 2015 and 900 stores in 2016. Dollar General's expansion plans reflect the company's optimism in its market position and has investors excited. As a result, Dollar General's shares closed at a record high of $74.28 on Thursday, March 12.
Dollar General Corporation (DG) shares ended the week at $74.28.
The Dow started the week of 3/9 at 17,857 and closed at 17,749 on 3/13. The S&P 500 started the week at 2,072 and closed at 2,053. The NASDAQ started the week at 4,936 and closed at 4,872.
Bonds - Treasury Yields Continue Fall
El Pollo Loco reported quarterly revenue of $90 million and full-year revenue of $344.9 million. For the quarter, revenue increased 11.9% driven by comparable store sales growth of 7.6%.
"We are pleased to have closed out fiscal 2014 with another strong quarter of sales and earnings growth," said El Pollo Loco President and CEO Steve Sather. "Our system-wide comparable restaurant sales growth of 7.6% marked our 14th consecutive quarter of positive comparable restaurant sales growth, as our unique 'QSR-plus' positioning, compelling value proposition, and broad menu offerings anchored by our signature fire-grilled chicken, continue to resonate with customers."
Net income for the quarter was $4.6 million compared to a net loss of $18.1 million during the same period last year. On a full-year basis, net income was $42.5 million compared to a net loss of $16.9 million the year before.
El Pollo Loco went public in July of 2014 and quickly became an investor favorite. Investors were initially too exuberant, pushing the IPO price of $15 per share to $42 per share before it settled down in the $20 range. The company's fourth quarter earnings helped reinforce why investors are excited about the company. El Pollo Loco demonstrated both quarterly and annual sales growth of at least 7%. That is impressive considering rival companies like KFC are struggling. During early Friday trading on March 13 El Pollo Loco's share price rose 12%.
El Pollo Loco Holdings, Inc. (LOCO) shares ended the week at $27.04.
Krispy Kreme's Earnings Aren't So Sweet
Krispy Kreme Doughnuts, Inc. (KKD) reported its fourth quarter and full-year results on Wednesday, March 11. Overall, the company's results disappointed investors for both the quarter and the full-year.
Krispy Kreme reported quarterly revenue of $125.4 million and full-year revenue of $490.3 million. Both numbers were increases from the comparable periods, but still fell shy of pre-release estimates.
"This past year, we increased adjusted net income by nearly 12%, significantly outpacing our almost 7% revenue growth, and completed our sixth consecutive year of positive same-store sales at Company stores," said Krispy Kreme President and CEO, Tony Thompson. "We are growing again in a disciplined and sustainable manner with a variety of shop formats designed to meet individual market needs. We continue to refine and improve our model to better meet consumer needs and deliver outstanding financial returns."
Net income during the quarter rose 36.4% to $11.4 million or $0.17 per share, which was on par with pre-release estimates. For the full-year, net income rose 11.6% to $48.3 million or $0.70 per share, which missed estimates by $0.02 per share.
Investors' love affair with Krispy Kreme has been hot and cold over the past decade. The stock was once a Wall Street darling in the early 2000s, but management missteps and shifts in consumer tastes brought the stock price crashing to earth. A couple of years ago the company was in the midst of a comeback, impressing investors with its ability to once again generate strong sales and earnings growth. The stock price reached a high of around $26 per share in November 2013 before a series of underwhelming earnings reports diffused some of the investor enthusiasm. The company's fiscal 2015 was solid, though not up to the expectations investors had for the company.
Krispy Kreme Doughnuts, Inc. (KKD) shares ended the week at $19.33.
Dollar General Looks in Command
Dollar General Corporation (DG) announced its fourth quarter and full-year results on Thursday, March 12. Along with strong results during the year, the company announced ambitious growth plans that excited investors.
Net sales during the quarter were $4.94 billion and for the full-year were $18.9 billion. Both figures were increases over the comparable periods and were helped by quarterly and full-year sales growth of 4.9% and 2.8%, respectively.
"In 2014, momentum built in our business as we moved through the year, marking our twenty-fifth year of consecutive same-store sales growth," said Dollar General Chairman and CEO, Rick Dreiling. "We are pleased with our fourth quarter results which reflect accelerating same-store sales and we intend to capitalize on that momentum as we move into 2015."
The company reported net income during the quarter of $355 million compared to $322 million in the same period last year. For the full-year net income was $1.07 billion, which was an increase over the prior year's $1.03 billion.
Dollar General is in a stronger position than its rivals Family Dollar and Dollar Tree, both of which are working on a possible merger. Following a successful 2014, Dollar General announced ambitious growth plans for 2015 and 2016. The company plans to open 730 stores in 2015 and 900 stores in 2016. Dollar General's expansion plans reflect the company's optimism in its market position and has investors excited. As a result, Dollar General's shares closed at a record high of $74.28 on Thursday, March 12.
Dollar General Corporation (DG) shares ended the week at $74.28.
The Dow started the week of 3/9 at 17,857 and closed at 17,749 on 3/13. The S&P 500 started the week at 2,072 and closed at 2,053. The NASDAQ started the week at 4,936 and closed at 4,872.
Bonds - Treasury Yields Continue Fall
Treasury yields fell during the week of March 9 as economic conditions in the U.S. and weak-performing bonds in Europe drew investors to the security of U.S. bonds. In addition, a fall in wholesale inflation and crude oil prices is increasing the number of Treasury purchases.
As the week of March 9 drew to a close, the yield on the benchmark 10-year Treasury yield had fallen 15 basis points to 2.10%. This caused the price of 10-year bonds to rise, which would be the biggest weekly gain for the 10-year note since January.
Driving the rise in prices are falling bond yields in Europe. Many European bond yields are going into negative territory as the continent's economic malaise persists. Further pushing European bond yields down is the European Central Bank's version of quantitative easing.
This week also saw the release of a new report showing that the produce price index, a measure of inflation, declined in February. The decline is coming amidst an improving U.S. economy and strengthening labor market.
"Any low inflation number is good for Treasuries," said Thomas Simons, a Government-Debt Economist in New York at Jefferies Group LLC. "It suggests liftoff is probably quite a ways away."
With inflation low, many are watching for signs that the Federal Reserve will raise interest rates, which have remained near zero since December 2008. The Fed's next meeting is scheduled for March 17-18. So far, the Fed has pledged to remain patient about raising interest rates, but removal of the word "patient" at its next meeting could signal plans to raise interest rates before the end of the year.
The 10-year Treasury note yield finished the week of 3/9 at 2.11% while the 30-year Treasury note yield finished the week at 2.7%.
CDs and Mortgages - Interest Rates Trend Upward
As the week of March 9 drew to a close, the yield on the benchmark 10-year Treasury yield had fallen 15 basis points to 2.10%. This caused the price of 10-year bonds to rise, which would be the biggest weekly gain for the 10-year note since January.
Driving the rise in prices are falling bond yields in Europe. Many European bond yields are going into negative territory as the continent's economic malaise persists. Further pushing European bond yields down is the European Central Bank's version of quantitative easing.
This week also saw the release of a new report showing that the produce price index, a measure of inflation, declined in February. The decline is coming amidst an improving U.S. economy and strengthening labor market.
"Any low inflation number is good for Treasuries," said Thomas Simons, a Government-Debt Economist in New York at Jefferies Group LLC. "It suggests liftoff is probably quite a ways away."
With inflation low, many are watching for signs that the Federal Reserve will raise interest rates, which have remained near zero since December 2008. The Fed's next meeting is scheduled for March 17-18. So far, the Fed has pledged to remain patient about raising interest rates, but removal of the word "patient" at its next meeting could signal plans to raise interest rates before the end of the year.
The 10-year Treasury note yield finished the week of 3/9 at 2.11% while the 30-year Treasury note yield finished the week at 2.7%.
CDs and Mortgages - Interest Rates Trend Upward
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, March 12. The results show mortgage rates rising this week on the heels of a strong jobs report for February.
The 30-year fixed rate mortgage averaged 3.86% this week. This was up from last week when it averaged 3.75%.
This week, the 15-year fixed rate mortgage averaged 3.10%. This number was an increase from last week when it averaged 3.03%.
"The average 30-year fixed-rate mortgage rose to 3.86% for this week following a strong labor market report, essentially bringing rates back to where they were at the start of the year," said Len Kiefer, Deputy Chief Economist at Freddie Mac. "The U.S. economy created 295,000 jobs in February while the unemployment rate dipped to 5.5% from 5.7% in January, both outperforming market expectations."
The money market fund finished the week of 3/9 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.
Global Church of the Nazarene Foundation
The 30-year fixed rate mortgage averaged 3.86% this week. This was up from last week when it averaged 3.75%.
This week, the 15-year fixed rate mortgage averaged 3.10%. This number was an increase from last week when it averaged 3.03%.
"The average 30-year fixed-rate mortgage rose to 3.86% for this week following a strong labor market report, essentially bringing rates back to where they were at the start of the year," said Len Kiefer, Deputy Chief Economist at Freddie Mac. "The U.S. economy created 295,000 jobs in February while the unemployment rate dipped to 5.5% from 5.7% in January, both outperforming market expectations."
The money market fund finished the week of 3/9 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.
Global Church of the Nazarene Foundation
17001 Prairie Star Parkway, Suite 200
Lenexa, Kansas 66220 United States
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