The Global Church of the Nazarene Foundation of Lenexa, Kansas, United States eNewsletter for Saturday, January 16, 2016

The Global Church of the Nazarene Foundation of Lenexa, Kansas, United States eNewsletter for Saturday, January 16, 2016

Dear friends:

To begin the new year, I will be spending the next few weeks highlighting a few of the most effective gift models available for planned and deferred giving through the Foundation. My hope is that this will be both informative and perhaps useful--either now or sometime many years into the future.
A Charitable Gift Annuity (CGA) is a gift that can provide you with secure, guaranteed income for life. Based off of your age, you'll receive a fixed percentage of your gift every year, with payments that are much higher than the interest rates on CDs or savings accounts. At the end of your life, the remaining principal amount of your gift is given to wherever you have designated: your church, a scholarship fund, a local ministry, or any Christian non-profit.
A CGA allows you to double the impact of your dollars. Your gift earns you additional income, while also providing a significant gift to ministry. Through it, you'll be able to bless the work of the Lord with a future gift in addition to your normal tithes and offerings. A portion of your payments may be tax free, and you'll receive a charitable tax deduction for the original gift. You can start a CGA with as little as $5,000.
If you are interested in starting a Charitable Gift Annuity, we would be glad to assist you. The Foundation is available at any time to provide you with free, no-obligation, Christian-centered consultations about planned giving. Contact us by phone at (913) 577-2983 or by email at info@nazarenefoundation.org.
Blessings,
Ken Roney
President

WASHINGTON NEWS

IRS Opens 2016 Tax SeasonIn IR 2016-05, the IRS announced that tax season will open on January 19, 2016. Because April 15 is Emancipation Day, taxpayers may file until Monday, April 18. There are two exceptions – taxpayers in Maine and Massachusetts will observe Patriot’s Day on April 18 and may file until April 19.
IRS Commissioner John Koskinen expects this season to flow more smoothly than last year. He encourages taxpayers to use the IRS website. Koskinen stated, “IRS.gov is the best place for taxpayers to go for information about filing their income tax returns this year. Although we will have more people staffing our phone lines this year, we expect those lines to remain busy so we encourage people to visit the web first as the quickest and easiest way to get assistance.”
The IRS expects approximately 80% of all returns to be electronic. Over 70% of taxpayers are likely to receive refunds. The average refund last year was $2,797.
The Free File program is also expected to be very popular. Over 100 million taxpayers with incomes of $62,000 or less may use free commercial tax software from the IRS website.
Taxpayers with any amount of income may use the IRS fillable forms. Of course, these require the taxpayers to have a general understanding of the tax system to complete these forms.
If you need a return from a prior year, you should use the “get transcript” tool on IRS.gov. It often will take 10 days for you to receive the transcript by regular mail.
This is the second year for filing under the Affordable Care Act (ACA). Most taxpayers will simply check the box if each family member had qualifying healthcare coverage for the year. There are various exemptions from mandatory ACA coverage. The IRS has an online tool that may be helpful in determining if you qualify for an exemption.
If you have a healthcare premium tax credit, you will need to file IRS Form 8626 to reconcile the credit amount with your actual qualification number. The Healthcare Marketplace Form 1095-A will be needed to complete IRS Form 8626.

• Healthcare providers may send out IRS Form 1095-B or Form 1095-C. A taxpayer may file early if the required healthcare information is available from other sources. You may check the “Questions and Answers” section on www.irs.gov/aca for assistance in completing your tax return medical forms.
• IRS Cautions on Identity Theft
• IRS Commissioner John Koskinen highlighted 2016 efforts to combat identity theft and tax refund fraud. He stated, “IRS employees have been working hard to get ready to help taxpayers this filing season. As part of our Security Summit Initiative, the IRS has been working closely with the tax industry and state revenue departments to provide taxpayers with stronger protections against identity theft during the tax filing season.”

The IRS has initiated a Security Awareness program. Publication 4524 covers many of the risks and protective actions. Taxpayers should consider three steps to protect themselves.

• Security Software – Make sure that your security software is always turned on and has the appropriate updates.
• Phishing Emails – If you receive a suspicious email, do not click on any links or documents. The email may claim to be from your bank, credit card company or even the IRS.
• Personal Data – Protect your Social Security Number and do not carry it with you. Make sure your tax records are in a safe and secure location.
• There are several warning signs that you have potentially been a victim of tax refund fraud.

Multiple Returns – If you receive a notice from the IRS that others have filed using your Social Security Number, you are probably a victim.

• Added Tax – The IRS may ask for additional payment or offset your tax refund due to a prior payout.
• Higher Wages – The IRS claims that you have more income than you actual earned in 2015.
• State Benefits – Your state or federal benefits have been cancelled due to higher income reported to the IRS.

If you have reason to believe you are a victim of identity theft, there are several actions to take.

• Report – Go to identitytheft.gov to file a complaint with the Federal Trade Commission.
• Credit Bureaus – Contact a major credit bureau and place a “fraud alert” on your account. The credit bureaus may be contacted at Equifax.com, Experian.com orTransunion.com.
• Close Accounts – Contact your bank or financial services company. Close the account with the tampering and open a new account.
• If Social Security Number used – When your Social Security Number has been used by a tax fraudster, complete IRS Form 14039, Identity Theft Affidavit.
• Tax Payments – You may need to file a paper tax return for this year. Your tax amounts are still due and must be paid.

...

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PERSONAL PLANNER

Trusts for Creative SpendersTrusts can be quite useful for protecting children. However, for some children, the trust serves an additional function: It protects the principal from being rapidly spent by a child. These trusts have a specific name—they are called "spendthrift" trusts.
Marla was visiting with her attorney Elizabeth shortly after her husband Harry passed away. She shared her concern for her youngest child, Joe.
Marla: "Harry and I were very fortunate to have four great children. I love each one of them very much. However, when it comes time to making decisions about inheritance, I have a big problem. Our older children Sam and Linda are quite good with financial matters. The third child Lynn is average, but our youngest son Joe is very carefree. If Joe has money, it is gone in a flash. What can I do?"
Elizabeth: "This is a fairly common situation. Many parents would like to treat their children equally, but some children are very good managers and one or two are not. In your case, we hope that Joe eventually learns to become more responsible. But for the present plan, it makes good sense to provide Joe with spendthrift trust provisions."
The Spendthrift Trust Concept

• A spendthrift trust allows a parent to protect a certain amount of inheritance. If you have a circumstance like Marla, it may be appropriate to transfer inheritance outright to some of your children and the same amount of property into a spendthrift trust for the "creative spender" child.
• A spendthrift trust will need to be managed by a trustee who can make good decisions. For a larger trust, this could be a bank or trust company. In many circumstances a private trustee is selected, such as one of the family financial advisors or even one of the other children.

The trustee will have the usual power to invest and manage the trust assets. The first important provision for the trustee is his or her power over income. The spendthrift trust normally includes seven different provisions that apply to the income:

• Income may be paid to the child.
• Income may be paid to persons or organizations providing benefits to the child. For a spendthrift child, it frequently is necessary to make the payment directly to the provider or the child would simply spend the money.
• The child may not demand the payment of the income. A spendthrift child may desire to purchase some item and would simply demand income if that right existed.
• The child may not pledge or borrow against the trust income or principal. Once again, if the child could pledge or borrow against the trust, they could quickly deplete the trust through those loans.
• The trustee usually has complete discretion over distributions. A parent may indicate the general purposes of the trust, but a trustee is better able to protect the principal and the beneficiary if he or she has complete discretion.
• Trust principal may be used by the trustee for the education, healthcare needs or support of the child.
• Some trusts create incentive plans. In these trusts, the trustee is authorized to distribute income that will match the income of the child.

Spendthrift Trusts and Distributions of Principal

• With a spendthrift trust, distribution of principal is also subject to specific requirements. While the parents are given a reasonable level of flexibility in setting forth the distribution rules, there are several general guidelines that are usually followed.
• The trustee will have discretion to distribute principal over the duration of the trust. The trustee normally has quite broad powers to make distribution of principal. In order to protect the child, this is quite important. However, the child may have a very good investment or business opportunity for which he or she needs principal. If the trustee is convinced that the child can use principal responsibly, then the distribution may be made.
• The trust principal is normally held in trust for life or until a fairly senior age, such as 50 or older. If the child eventually acquires the capability of managing assets properly, the trustee can use the discretionary power to move the assets to the child. However, because the parent is concerned that the child may never acquire a high level of management expertise, the trust often lasts for life.
• The child has no right to demand principal. The principal is controlled by the trustee for the protection of the child.
• The child may not pledge the trust principal or borrow against the principal. Because the trustee is not obligated to make payment on any loans by the child, the banks or other lenders will not make loans using the trust income or principal as collateral.

A Solution for "Creative Bill"
Sam and Sandy have an estate of $1 million. Their children—Alice, Jim and Bill—are all in their mid-thirties. Alice is age 38 and Jim is age 37. They are both solid and responsible. However, Bill is 33 and is quite a creative person. Sandy says that "If Bill had a million dollars, he would use it creatively in three weeks."
Because of their desire to treat everyone equally and to protect Bill from his creative spending habits, Sam and Sandy created a fairly typical plan for their circumstances. If one spouse passes away, the $1 million estate will be transferred to the survivor. When the survivor passes away, their favorite charity will receive a bequest of 10% of the estate. The other 90% will be divided. Alice and Jim will receive their shares outright. However, the third share will be transferred into a spendthrift trust with family advisor Steven as trustee. There will also be a successor trustee—First Bank from their local community.
As trustee of the spendthrift trust, Steven will receive approximately $300,000. He will invest this amount in a diversified portfolio of stocks and bonds. Steven will have discretion to distribute income and/or principal to Bill. When Bill reaches age 55, he will then receive the full inheritance. Sam and Sandy believe that by that time he will be responsible in managing the property.

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SAVVY LIVING

Protecting an Elderly Parent with Video MonitoringCan you recommend some good home video monitoring devices that can help my sister and me keep an eye on our elderly mother? Over the holidays, we noticed that her health has slipped a bit, and would like to keep a closer eye on her.
There are many great video monitoring cameras that can help families keep a watchful eye on an elderly parent from afar, but make sure it's okay with your mom first. Many seniors find this type of "I'm watching you" technology to be an invasion of privacy, while others don't mind and even welcome the idea. With that said, here are some top monitoring devices for keeping tabs on your mom.
Video Monitoring
As the technology has improved and the costs have come down, video monitoring/surveillance cameras have become very popular for keeping an eye on a home, business, child or pet (designed to connect to a smartphone, tablet or computer), but they also work well for monitoring a loved one who lives alone.
Most home video monitoring cameras today are sleek. They are small and easy to set up, but do require home Wi-Fi.
Although camera capabilities will vary, the best devices all provide wide-view angles, HD quality video, night vision, built-in motion and sound detection that can notify you when something is happening, and two-way audio that let's you talk and listen.
These cameras offer a video recording option (for an extra fee) that saves past video to a cloud, so you can rewind and review what you missed.
One of the best products available today that does all this and more is the Nest Cam (nest.com). The Nest Cam costs $199, but if you want their video recording option, it's an extra $100 per year for a 10-day video history, or $300/year for a 30 day history.
Also check out the Piper NV (getpiper.com). At $279 it is more expensive than the Nest Cam but allows free Internet cloud storage. The Simplicam (simplicam.com) is another option. It is the cheapest of the three, but the video quality isn't quite as good. The cost is $150 for the camera, or $200 for the camera plus 24-hour video storage for one year.
Sensor Monitoring
If your mom is uncomfortable with video monitoring and doesn't want you to be able to peek in on her whenever you want, another less invasive option to consider is a "sensor" monitoring system.
These systems use small wireless sensors (not cameras), which can be placed in key areas of your mom's home. These sensors can detect changes in activity patterns and will notify you via text message, email or phone call if something out of the ordinary is happening.
A great company that offers this technology is Silver Mother (sen.se/silvermother), which provides small sensors that you attach to commonly used household objects like a pillbox, refrigerator door, TV remote, front door, etc.
For example, if your mom didn't pick up her pillbox to get her medicine or didn't open the refrigerator door to make breakfast like she usually does, or if she left the house at a peculiar time you would be notified and could check on her. You could also check up on her anytime you want online or through their mobile app. Silver Mother costs $299 for four sensors, and does not charge ongoing monthly service fees.
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.

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YOUR PLAN
The Egg Endowment

Let me tell you about a big egg business. Coming out of the military service at the close of the Korean war, Randall decided to put his agriculture degree to work, so he went into the chicken business. Randall and his wife, Janet, put it all on the line. For several years they struggled to make ends meet and finally, during one real desperate business cycle, they decided to turn their chicken business over to God. Janet said they prayed, "Lord, this is your business, do what you will with it."
God heard their prayers. Over the years, He prospered their labor. They eventually built a very large chicken business with over 16 million chickens housed in various states. They continued to honor God's faithfulness by becoming generous givers and teaching the principles of generous giving to their four children. In 2007, Randall, Janet and some of their family established a substantial endowment fund with the Church of the Nazarene Foundation. This endowment fund will generate income to the local Church of the Nazarene for use in family and children's ministries. The pastor says, "This gift will enable our church to reach into the homes and lives of countless people without negatively impacting our daily operational needs."
The eggs they gathered over a lifetime will produce far more than a wonderful breakfast. ... 

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FINANCES

Stocks - Intel Reports Full-Year and Quarterly Earnings 

Intel Corporation (INTC) reported its full-year and fourth quarter results on Thursday, January 14. Overall, the company's results exceeded expectations.
The company reported that full-year and fourth quarter revenue were $55.4 billion and $14.9 billion, respectively. Quarterly revenue increased 1% compared to the same period last year.
"Our results for the fourth quarter marked a strong finish to the year and were consistent with expectations," said Intel CEO Brian Krzanich. "Our 2015 results demonstrate that Intel is evolving and our strategy is working. This year, we'll continue to drive growth by powering the infrastructure for an increasingly smart and connected world."
Intel reported that full-year and quarterly net income were $11.4 billion and $3.6 billion, respectively. On an earnings per share basis, quarterly earnings were $0.74 per share, better than analysts' estimates of $0.63 per share.
While Intel's earnings were positive overall, one metric that worried investors was the company's forecast for gross margins. Intel announced that it expects first quarter gross margins to drop by 6.3% to 58%. Gross margins are a closely-watched metric for Intel analysts and investors. Consequently, the company's share price fell 5% in after-hours trading following the earnings release.
Intel Corporation (INTC) shares ended the week at $29.76, down 6.4% for the week.
Wells Fargo Reports Strong Earnings
Wells Fargo & Company (WFC) announced its full-year and fourth quarter results on Friday, January 15. The company's results were better-than-expected.
Wells Fargo reported that full-year revenue was up 2% to $86.1 billion. For the fourth quarter, revenue was up 1% to $21.6 billion.
"Full year and fourth quarter 2015 results demonstrated the benefit of our diversified business model as we again generated strong financial results, maintained our risk discipline and continued to invest across the company for future growth," said Wells Fargo Chairman and CEO John Stumpf. "We remained focused on the building blocks of long-term shareholder value, with continued growth in loans, deposits and capital."
The company reported that net income for the full-year was $23 billion and $5.7 billion for the quarter. Both figures were flat compared to the comparable periods last year.
Wells Fargo continues to be the largest U.S. bank in terms of market value. During the past quarter the company reported that total deposits increased 6% to $1.2 trillion. In addition, the bank reported that loan growth for the fourth quarter increased 6% to $916.56 billion.
Wells Fargo & Company (WFC) shares ended the week at $48.82, down 2.7% for the week.
Rocky Mountain Chocolate Reports Earnings
Rocky Mountain Chocolate Factory (RMCF) announced its third quarter results on Thursday, January 14. The company reported results lower than the third quarter of last year.
The company reported revenue during the quarter of $9.8 million. This was a 7.5% drop from revenue of $10.6 million during the same period last year.
"We've returned much of our excess cash to stockholders," said Rocky Mountain Chocolate Factory COO and CFO Bryan Merryman. "In the past twelve months we've repurchased approximately $4.3 million of our common stock and increased our quarterly dividend to $0.12 per share."
Net income for the quarter was $774,000. This was a 19% decrease from $955,000 during the same period last year.
Rocky Mountain Chocolate Factory is an international confectionary manufacturer. The company has stores operating in 40 states and four countries, including Canada and Japan. Rocky Mountain Chocolate Factory is headquartered in the small southwestern Colorado town of Durango.
Rocky Mountain Chocolate Factory (RMCF) shares ended the week at $9.62, down 8.8% for the week.
The Dow started the week of 1/11 at 16,359 and closed at 15,988 on 1/15. The S&P 500 started the week at 1,926 and closed at 1,880. The NASDAQ started the week at 4,673 and closed at 4,488.

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Bonds - Investors Flock to Treasuries 

Treasury prices rose sharply during the week of January 11 as investors flocked to the safety of U.S. government bonds amidst falling stock indices in the U.S. and around the globe. Economic data released on Friday, January 15 did little to allay investors' fears surrounding the health of the U.S. economy.
China's main stock index has lost 20% of its value since it reached a high in late December. The fall continued overnight on January 14 when the index fell 3.6%. European stocks and U.S. stocks have likewise fallen as a result. The Dow Jones Industrial Average has dropped 1,400 points since the start of the year and was down a further 2.3% on Friday, January 15.
Because of the rapidly falling stock indices, investors rushed to place their capital into U.S. government bonds. During early Friday trading, the benchmark 10-year yield briefly fell below 2%, a level it hasn't reached since October 27. With Treasuries, yields move inversely to prices, so as yields fall, prices rise.
Friday also saw the release of economic data that cast doubt on the U.S. economic recovery. The Commerce Department said that sales at retail stores and restaurants fell 0.1% in December. In 2015, sales grew just 2.1%, the slowest increase in six years.
The dreary economic news this week has cast doubt on the Federal Reserve's plans to continue raising interest rates this year. Fed Funds futures now show not only a 0% chance the Fed will raise rates at its upcoming January 27 meeting, but an 8% chance the Fed will cut interest rates.
"The economic growth in this country was already coming apart a little bit," said Kevin Giddis, Head of Fixed Income Capital Markets at Raymond James. "That's certainly going to keep the Fed from the tightening cycle they started a month ago."
The 10-year Treasury note yield finished the week of 1/11 at 2.03% while the 30-year Treasury note yield was 2.81%.

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CDs and Mortgages - Interests Rates Continue to Fall 

Freddie Mac released its latest Primary Mortgage Market Survey (PMMS) on Thursday, January 14. The report showed interest rates falling for the second consecutive week to start the new year.
The 30-year fixed rate mortgage averaged 3.92% this week. This represents a decrease from last week when it averaged 3.97%. Last year at this time, the 30-year fixed rate mortgage averaged 3.66%.
This week, the 15-year fixed rate mortgage averaged 3.19%. This was down from last week when it averaged 3.26%. The 15-year fixed rate mortgage averaged 2.98% one year ago.
"Long-term Treasury yields continue to drop, dragging mortgage rates down with them," said Sean Becketti, Chief Economist at Freddie Mac. "Turbulence in overseas financial markets is generating a flight-to-quality which benefits U.S. Treasury securities. In addition, sagging oil prices are capping inflation expectations. The net effect on the 30-year mortgage rate was a 5 basis point drop to 3.92%."
The money market fund finished the week of 1/11 at 0.3%. The 1-year CD finished at 0.6%.

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To model generosity inspires others to do the same. Thank you for your interest in the Foundation as we strive to partner with churches, ministries, and Christians around the world to fund the important work of God's Kingdom.
To access updated financial and gift planning information, please visit our website, www.nazarenefoundation.org. If you would like more information about your charitable giving options or about how a Foundation representative can visit your church, contact us by phone at (913) 577-2983 or by email at info@nazarenefoundation.org.
The Global Church of the Nazarene Foundation

17001 Prairie Star Parkway, Suite 200

Lenexa, Kansas 66220, United States
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