Saturday, March 26, 2016

The Global Church of the Nazarene Foundation of Lenexa, Kansas, United States eNewsletter for Saturday, March 19, 2016

The Global Church of the Nazarene Foundation of Lenexa, Kansas, United States eNewsletter for Saturday, March 19, 2016


Dear friends,
The Foundation offers a variety of services to meet the needs of many people. If you:
are nearing retirement age and want to create secure cash flow
have an appreciated asset like stock or property that will trigger high capital gains tax if sold
are simply looking for creative ways to support a favorite ministrythe Foundation can help you find the unique giving solution that will meet your specific needs. Our representatives are located around the country and would love to speak with you or anyone you know about the possibilities of planned and deferred giving.
For our Nazarene ministries and local churches, the Foundation offers Investment Management Accounts for the long-term savings of the organization and regularly partners with churches and ministries to raise funds for their work through planned giving.
If you are interested in any of the services offered through the Foundation, we would love to speak with you. We can be reached at (913) 577-2983 or info@nazarenefoundation.org.
Blessings,
Ken Roney
President

WASHINGTON NEWS
IRS Warns of New Phone Tax Scam
In IR-2016-40 the IRS warned about a new phone tax scam. The tax scammers will call victims and explain that they are just verifying their tax return information. Read More
Washington News

IRS Warns of New Phone Tax Scam
In IR-2016-40 the IRS warned about a new phone tax scam. The tax scammers will call victims and explain that they are just verifying their tax return information.
The caller frequently will claim that he or she is reviewing your tax return. You will need to confirm your Social Security Number, bank account number and routing numbers. IRS Commissioner John Koskinen stated, “These schemes continue to adapt and evolve in an attempt to catch people off guard just as they are preparing their tax returns. Do not be fooled. The IRS will not be calling you out of the blue asking you to verify your personal tax information or aggressively threatening you to make an immediate payment.”
Koskinen observed that the tax scams are growing in every part of the country. He continued, “It is a growing list of people who have encountered these. I have even gotten these calls myself.”
The Treasury and Inspector General for Tax Administration (TIGTA) monitors phone scam reports. It notes that since October 2013 there have been 896,000 reported phone scam calls. Over 5,000 victims have paid $26.5 million to scammers.
In 2016 the IRS also estimates that there is a 400% increase in “phishing” contacts by email.
The IRS cautions that there are several actions it will not take. It will not call you to demand an immediate payment, ask you to verify personal and financial information, demand that you pay tax immediately, require you to use a method such as a prepaid debit card to pay your taxes, ask for your credit or debit card numbers over the phone or threaten you with immediate arrest by your local police.
There are several steps that will help protect you from a phone scammer. First, do not give personal information over the phone. Second, if you suspect a phone scam, call TIGTA at 800-366-4484 and report it. Third, you can go to www.FTC.gov and use the “FTC Complaint Assistant” on their website to report the scam.

PERSONAL PLANNER
Gifts with Life Income
Many friends of charity have acquired appreciated property over time. A great way to use this appreciated property is for a charitable gift. Read More
Personal Planner

Gifts with Life Income
Many friends of charity have acquired appreciated property over time. A great way to use this appreciated property is for a charitable gift. A donor of appreciated property receives a charitable tax deduction and also benefits from bypassing capital gains tax on that gift property.
But some friends also want to increase their income. Two agreements that are popular for this purpose are a gift of appreciated stock for a charitable gift annuity and a gift of real estate into a special trust called a charitable remainder unitrust.
If you make a transfer into a gift plan that pays you income for life, you may receive both a charitable tax deduction and favorable capital gains benefits. Because you receive income, your charitable deduction is for a portion of the value in your property.
With most life-income gifts, your selected charity will need to wait until you pass away before it receives the actual gift. The IRS has periodically approved these plans in letters and rulings.
Therefore, a gift annuity or charitable remainder trust is a very good way to combine a charitable deduction now, income for one or two lives and an eventual significant benefit to a favorite charity.
Susan Seeks Secure, Fixed Payments
After taking her car in to have it repaired, Susan looked at the cost of the parts for that repair and thought that the auto parts business would be a good investment. She did some research and purchased stock about 10 years ago in a mid-sized company that had auto parts stores throughout the nation.
Susan thought that people will always need replacement parts for their autos and other vehicles. She proved to be a good investor, and the stock increased from the $20,000 she paid to its present value of $50,000.
Because Susan is now in her 70s and not getting as much income from her CDs and other investments that she desires, she is exploring ways to increase her income. The stock has increased in value to $50,000, but pays a dividend between 1% and 2%.
Susan read about a charitable gift annuity. It appeared to her that based on her age she could receive fixed payments of 6.3%. She was quite excited and called her CPA Margie to discuss setting up a gift annuity.
Susan: "Margie, I bought this stock 10 years ago after I had a car repair done. It was a bit of a shock to me when I saw the cost of the auto parts. But I thought about that and decided that an auto parts store might be a good investment. I invested $20,000 in a mid-sized company and that stock is now worth $50,000. I was reading the website of my favorite charity and it seems that I can set up a charitable gift annuity with this stock."
Margie: "Yes, a charitable gift annuity is a contract between you and the charity. I ran your $50,000 number on the website calculator and you will receive a 6.3% payout for life. That's $3,150 each year."
Susan: "That's great! Do I also get any tax savings? I sure could use a deduction this year."
Margie: "There is good news about tax savings. You get a charitable tax deduction of about $20,000. In addition, around 30% of your annual payment will be tax free."
Susan: "So this is going to increase my income and at the same time reduce my taxes. It sounds like just the right plan. I will call the charity today."
Steve and Linda are Tired of Tenants
Steve and Linda bought a rental home 10 years ago. They're both 65 now and would like to retire.
Because they want to travel, they hope to sell the rental property and be freed of the management responsibility. Last month they finished paying off the mortgage and the property is now debt free.
Steve and Linda called their attorney Bill to discuss the best way to sell so they can start traveling.
Steve: "We bought this years ago and actually have not taken income. All of the rental payments have gone to pay off the debt. Our CPA says that the original $200,000 cost has now been depreciated down to around $125,000. But the home has gradually increased in value and we think it is worth about $300,000."
Bill: "I understand why both of you are ready to sell. It certainly is an effort to manage tenant issues. You could sell the property, invest the proceeds and have greater freedom to travel."
Steve: "We heard that you can sell tax free and we don't want to pay any tax. How does that plan work?"
Bill: "Several of my clients have set up a special charitable trust to sell property tax free. You and Linda could transfer your rental home to the trust. The trustee then will sell tax free. Plus, you get a charitable deduction of around $100,000 if you take a 5% payout. That's the minimum payout, but it is a very good idea. Most of my financial planner friends recommend a 5% payout for the best long-term investment security. So I usually suggest a 5% trust. We have a special name for that trust. It is called a unitrust."
Linda: "So we can sell tax free and get 5% payments for both our lives. If Steve passes away, will I receive the full 5%?"
Bill: "Yes. The income will be paid jointly to you during life and then to the survivor for his or her lifetime. Hopefully, the trust will earn more than 5% and will grow. If the trust principal grows, your 5% income can grow and give you some inflation protection. Because you might live for 25 years, 30 years or even longer, that is quite important."
Linda: "After we both pass away, then my understanding is that the trust will be given to one or more favorite charities."
Bill: "Yes, you can select the charity or charities to benefit from your unitrust."
Steve: "This sounds like quite a good idea. Bill, go ahead and draft the charitable trust. We already have a stack of travel brochures on our coffee table. We're ready to start moving now."

SAVVY LIVING
How to Save on Prescription Eyeglasses
What tips can you recommend for finding affordable prescription eyeglasses? I used to have vision insurance through my work, but lost it when I turned 65, retired, and signed up for Medicare. Read More
Savvy Living

How to Save on Prescription Eyeglasses
What tips can you recommend for finding affordable prescription eyeglasses? I used to have vision insurance through my work, but lost it when I turned 65, retired, and signed up for Medicare.
Prescription eyeglasses today aren't cheap. You can easily spend $200 for a basic pair, but if you want designer frames or need bifocal or progressive lenses the price can more than double. Here are a few different options that can help you save.
Medicare/Insurance Coverage
If you are a Medicare beneficiary, you already know that original Medicare (Part A and B) and Medigap supplemental policies do not cover routine eye exams or eyeglasses (unless you've just had cataract surgery), but there are some Medicare Advantage (Part C) plans that do.
Many of these plans, which are sold through private insurance companies, cover vision as well as dental, hearing and prescription drugs, in addition to all of your hospital and medical insurance. To locate Advantage plans in your area that provide vision coverage, visit Medicare.gov/find-a-plan or call 800-633-4227. But before enrolling in a plan, check the benefit details to ensure the plan's vision coverage includes routine eye exams, eyeglass frames and lenses.
You can switch from original Medicare to a Medicare Advantage plan each year during the open enrollment period, which is between Oct. 15 and Dec. 7.
If, however, you don't want a Medicare Advantage plan, you can still get coverage by purchasing an inexpensive vision insurance policy - see eHealthInsurance.com. Policy costs vary depending on where you live, but they usually start at around $6 to $9 per month for an individual. Before signing up, make sure your savings potential is worth the cost of the premiums and copays.
Discount Stores
Purchasing eyeglasses from discount retailers is another way to save. Costco is one of the best discount stores for good eyewear and low prices. Eyeglasses cost an average of around $150, but to shop there you have to pay a $55 annual membership fee. Some other good retail options for low prices include For Eyes Optical, BJ's Optical, Sam's Club and Walmart.
You also need to find out if you are eligible for any discounts. Many retailers provide discounts to membership groups like AARP and AAA. AARP members, for example, can get 30% off a pair of prescription eyeglasses as well as discounts on eye exams at any LensCrafters, most participating Pearle Vision, Sears Optical, Target Optical, JCPenney Optical and thousands of private optometrist offices.
Look Online
Buying eyeglasses online can also offer huge savings. Some online stores likeZenniOptical.com, Goggles4u.com and EyeBuyDirect.com sell prescription eyeglasses for as little as $7 plus shipping. These sites let you upload a photo of your face, so you can see what you'd look like in different frames.
Or, for a fancier choice of frames see WarbyParker.com, which offers single-vision glasses for $95. They even offer a free program where you can request up to five pairs to try on at home for five days.
To purchase glasses online, you'll need your eyeglass prescription from a local eye doctor, plus your pupillary distance number, which is the distance, measured in millimeters, between the centers of your pupils in each eye.
Low-Income Assistance
If your income is low, depending on where you live, there may be some local clinics that provide free or discounted eye exams and eyeglasses. Put in a call to your local Lions Club to see what's available in your area. See directory.lionsclubs.org for contact information.
You may also be able to get free eyeglasses through New Eyes (new-eyes.org, 973-376-4903), a nonprofit organization that provides free eyeglasses through a voucher program to people in financial need.
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
Current Gifts
As is the case with many families, there are times each year when Jim and Sharon focus their attention on gift giving. Read More
Current Gifts

Every year, Jim and Sharon would focus their attention on giving gifts to those that they loved. One year, they made an addition to their gift list and began including their favorite ministry in their giving plan. Now, their Christmas list included family members, friends, loved ones, and the children's camp that they had always been involved with.
Sharon: "Years ago, I inherited stock from my grandmother. We held the stock for several years but decided to sell a portion of it this year. The stock had gone way up in value, and our CPA informed us that we had a capital gain of nearly $120,000. We had always planned on making some kind of gift to our local children's camp, and the CPA reminded us that if we were to make a gift of this stock before the end of the calendar year, we would receive a charitable deduction on the gifted shares. This deduction will help offset the capital gains tax on the stock we sold."
Jim: "We had previously contacted the Foundation about possible ways to give to this camp, and they had mentioned a direct gift of cash, a donation of real estate, and several other options. However, he also mentioned that it might be especially beneficial for us to give some of our remaining stock. They could process the transfer directly, so the rest of our stock could be sold and given to the camp tax free"
Sharon: "We were still holding $80,000 in the same highly appreciated stock and did not intend to sell, primarily because of the substantial capital gains tax we already faced. The Foundation representative recommended that we consider an end-of-year gift that would help lower our taxes. It meant that our stock would be sold, part of the proceeds would come to us, and part would be gifted to our favorite charity."
Jim: "That is what we decided to do. We gave the $80,000 in stock and received a charitable deduction and avoided large capital gains taxes. The deduction even offset the capital gains for our prior stock sale of $120,000 earlier that year. We are very pleased that our gift to the camp could bless their ministry and save us a lot of money in taxes."
**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 benefits may be different, please contact us for more information.

FINANCES
Finances
Stocks - Oracle's Shift to the Cloud Proves Profitable Read More
Oracle's Shift to the Cloud Proves Profitable
Oracle Corporation (ORCL) released its third quarter earnings on Tuesday, March 15. While earnings and revenue results were mixed, the tech company's total cloud revenue soared.
Oracle reported third quarter revenue of $9.01 billion. This figure was down 3% from the company's year ago quarter and was below consensus estimates of $9.12 billion.
"In absolute dollar terms, Oracle is already selling more enterprise SaaS and PaaS new cloud revenue than any other company in the world-including Salesforce.com," said Larry Ellison, Oracle Chairman and CTO. "In some of our most important SaaS markets, such as ERP, HCM, Supply Chain and Manufacturing, Salesforce.com does not participate at all. By successfully competing in all of these markets, Oracle has the ability to sustain its high growth over a long period of time. That should make it easy for us to pass Salesforce.com and become the largest SaaS and PaaS cloud company in the world."
Oracle reported earnings of $0.64 per share. While this was down from last year's reported earnings per share of $0.68, it exceeded analysts' estimates of approximately $0.62 per share.
Oracle develops, manufactures, markets, sells, hosts and supports database software, cloud infrastructure, hardware products and services. Like other tech companies, Oracle is shifting toward web-based cloud services rather than installed software. Accordingly, Oracle's third quarter earnings report revealed that cloud software sales were up 57% from a year ago, while software sales fell 4%. The cloud momentum was one factor that influenced Oracle's announcement on Tuesday that its board authorized the repurchase of an additional $10 billion of common stock under its existing share repurchase program.
Oracle Corporation (ORCL) shares ended the week at $41.48, up 6% for the week.
FedEx Delivers Robust Earnings
FedEx Corporation (FDX) announced its third quarter earnings on Wednesday, March 16. The shipping giant delivered strong earnings, beyond analysts' estimates, causing its shares to jump 7% in early trading Thursday.
The company's third quarter revenue was $12.7 billion, compared to reported revenue of $11.7 billion in the same quarter last year. The revenue figure surpassed analysts' estimates by approximately $4 million.
"Our strong financial performance was driven by increasing demand for our broad portfolio of FedEx business solutions, which helped increase revenue and adjusted profit for the corporation," said Frederick W. Smith, President and CEO of FedEx. "We sincerely appreciate the peak season efforts of our FedEx team members who delivered great service despite the challenges of stronger-than-expected shipping demand, driven by the growth in e-commerce."
FedEx reported that its net income jumped to $692 million, up from $507 million in the same period last year. Earnings per share in the third quarter were $2.51, compared to $2.03 in the third quarter last year.
Despite competition from Amazon, which unleashed its own delivery fleet last year, FedEx has remained strong. On Wednesday, the company announced that it is raising the floor on its 2016 fiscal year expected earnings from $10.40-$10.90 to $10.70-$10.90. Alan Graf, Jr., CFO of FedEx, shed light on the increase, explaining, "We now expect our fiscal 2016 adjusted earnings to be up 20% to 22% over last year...Our positive financial momentum should continue into our upcoming fiscal 2017, where we expect solid growth in earnings and cash flow."
FedEx Corporation (FDX) shares ended the week at $163.71, up 12% for the week.
Tiffany Struggles to Maintain its Sparkle
Tiffany & Co. (TIF) reported its full-year and quarterly earnings on Friday, March 18. While the company surpassed analysts' expectations for the quarter, its shares have dropped 8% since the beginning of the year as sales continue to fall.
The company's fourth quarter revenue fell 5.6% to $1.21 billion. Additionally, Tiffany reported full-year revenue of $4.10 billion, falling below the prior year's revenue of $4.25 billion.
"We faced various challenges during the year that negatively affected our financial results, especially related to the strong U.S. dollar," said Tiffany CEO Frederic Cumenal. "However, our management team continued to pursue initiatives to strengthen Tiffany's abilities to serve our clientele effectively and deliver extraordinary products and experiences. This included introducing a range of enticing new products spanning diamonds to silver jewelry, and enhancing our global store base."
Tiffany reported adjusted fourth quarter earnings of $1.46 per share. While earnings for the same quarter last year were $1.51 per share, Tiffany beat the average analyst estimate of $1.40. After the announcement, Tiffany shares rose as much as 4% in early morning trading.
Tiffany, the New York-based upscale jewelry company, has faced many obstacles this year, including a strong dollar and an unstable global economy. The shakiness of the global economy has caused tourists to shy away from luxury stores like Tiffany and other high-end retailers like Neiman Marcus, Nordstrom and Bloomingdales. Tiffany announced that it expects profits to fall 15-20% in the first quarter and 5-10% in the second quarter. However, the company predicts that the trend will reverse and that the company will resume growth in the third and fourth quarters.
Tiffany & Co. (TIF) shares ended the week at $72.19, up 1% for the week.
The Dow started the week of 3/14 at 17,207 and closed at 17,602 on 3/18. The S&P 500 started the week at 2,019 and closed at 2,050. The NASDAQ started the week at 4,712 and closed at 4,796.

Bonds - Yields Retreat as Fed Hesitates to Raise Rates Read MoreYields Retreat as Fed Hesitates to Raise Rates
Just as the yield on the 10-year Treasury note touched the 2% mark, the Federal Reserve surprised investors on Wednesday by retreating from its previous interest rate hike forecast. The announcement caused Treasury yields to pull back and finish the week lower after rising for four straight weeks.
The Fed cut back its forecasted number of rate hikes this year from four to two, citing a weak global economy as its cause for hesitation. As a result, investors turned back to government bonds to ensure investment safety.
"There have been a lot of mixed messages this week," said Thomas Simons, senior money market economist at Jefferies. "First the CPI data showed inflation inching up, but then the Fed lowered its outlook for inflation and said only two rate hikes this year. This resulted in a lot of choppy action in the Treasury market,"
Additionally, Japan and Germany are experiencing tumbling yields in their government bonds. This is creating an increased demand in the U.S. from overseas investors as, comparably, U.S. bonds continue to offer one of the highest returns worldwide.
"In the global context, the move toward further negative rates has seen a pick up in volatility in bonds," said Tony Morriss, an interest-rate strategist at Bank of America Merrill Lynch in Sydney. "The ranges on Treasuries are a reflection of more volatility and uncertainty about what policy makers will do from here."
The 10-year Treasury note yield finished the week of 3/14 at 1.87% while the 30-year Treasury note yield was 2.67%.
CDs and Mortgages - Interest Rates Continue Upward Trend Read More
Interest Rates Continue Upward Trend
Freddie Mac released its latest Primary Mortgage Market Survey (PMMS) on Thursday, March 17. The report showed interest rates moving higher for the third week in a row.
The 30-year fixed rate mortgage averaged 3.73% this week. This represents an increase from last week when it averaged 3.68%. Last year at this time, the 30-year fixed rate mortgage averaged 3.78%.
This week, the 15-year fixed rate mortgage averaged 2.99%. This was up from last week when it averaged 2.96%. The 15-year fixed rate mortgage averaged 3.06% one year ago.
"Treasury yields increased heading into this week's FOMC meeting, partially in response to modestly higher inflation readings," said Sean Becketti, Chief Economist at Freddie Mac. "30-year mortgage rates kept pace, rising 5 basis points to 3.73%. Nonetheless, at the meeting the Fed confirmed what the market had already concluded and made no change to the Federal funds target. The Fed went further and acknowledged that economic signals have been mixed and that the pace of monetary tightening may be slower than had been assumed at the end of 2015."
The money market fund finished the week of 3/14 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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1 comment:

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