Lenexa, Kansas, United States - Model Generosity: Leave a Lasting Legacy through Planned Giving - Global Church of the Nazarene for Saturday, 5 July 2014

Lenexa, Kansas, United States - Model Generosity: Leave a Lasting Legacy through Planned Giving - Global Church of the Nazarene for Saturday, 5 July 2014
“The people rejoiced at the willing response of their leaders, for they had given freely and wholeheartedly to the Lord.”(1 Chronicles 29:9a)
When we surrender our lives and our resources "freely and wholeheartedly to the Lord," we experience God's peace, presence, and blessings in unlimited ways. At times, it is extremely difficult to turn over certain areas of our lives to God. If we only ask, God is eager to empower us to do this with every passing day.
For more information on how to use your resources to support the future of your favorite ministry, please reply to this email or contact us by phone at 913.577.2983.
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Blessings,
Kenneth R. Roney, J.D.

President
PERSONAL PLANNER

Helping Children Today
When children are in their 30s and 40s, they frequently are starting a new career or beginning a family. Many are still paying off school debts. For these reasons they could benefit from some additional help.
If parents have appreciated property, a special trust that helps children could be very beneficial. The parents will receive substantial tax savings, while the children can benefit from 20 years of income from the trust.
Kris and Jill have raised three children. When the children were young, Kris and Jill did what many parents do in their mid-40s—they bought a new home. However, rather than selling their old home, they turned it into a rental unit.
After renting that home for 20 years, Kris and Jill are now 65. Their three children have all moved out and are starting families. Kris and Jill own their current home, have recently sold their business and enjoy good retirement income.
Their oldest child is a daughter with two children. The middle son is married with three children and their younger son has two children. Kris and Jill especially enjoy visiting their seven grandchildren.
As they considered their situation, Kris and Jill decided they would like to help their children. However, they are seeking a solution that will also save taxes. The rental home was initially purchased for $200,000. Their CPA has taken depreciation during the time they have owned it. In today's real estate market, it is worth about $400,000.
Kris and Jill are now ready to sell and move on with life. Therefore, they sat down to discuss options with their CPA, Sam.
Kris: "Sam, you know that we bought the new house when we were both 45 and we kept this as a rental. Now after 20 years, we are tired of tenants and ready to move on. Jill wants to spend our time visiting the grandchildren and doing some traveling. But I know that this home is now worth much more today, so there would be a big tax if we were to sell. Is there a way we can help the children without paying tax?"
Sam: "I understand that it's now time to consider moving on. Your retirement income is good, you own your home and have no debt. You are well positioned to do something to help your children. It would also be great if we could reduce your income taxes for the next five years. That would provide additional ability for you to save and invest more for the future."
Jill: "Yes, we are in good shape but our children are now trying to start families. They need some extra help. With the cost of education, clothes and other items for our grandchildren, we would like to give them some assistance."
Sam: "You could set up a special trust that allows you to sell this property tax free. That would leave the full value available to earn income for your children. I could run an illustration that shows how we could set that trust up for 20 years and sell without tax. In addition, you receive a charitable deduction of approximately $150,000. We probably would spread that over about five years. Each year you could reduce your personal income taxes by over a third with that deduction."
Kris: "That's the ticket—helping children and saving taxes at the same time. How much income would we transfer to the children?"
Sam: "It looks like that trust would pay over $500,000 to the children over the 20 years. That's quite a bit of education and clothes!"
Jill: "And after the 20 years of payments to children, can we then pick the charities that will receive the trust property?"
Sam: "Yes. You can select one or more charities that will receive a very nice gift."
Kris: "But who will manage the property? We're going to start traveling and we don't want to have management responsibilities."
Sam: "We can talk to a charity or a trust company to serve as trustee. A trustee will invest the proceeds after the property is sold and pay the income to your three children. If you would like, I will make contact with a trustee and we can get the process started."
Jill: "I think it is time to move forward, so let's go ahead and set up this plan."
SAVVY LIVING
How to Protect Your Medicare Card from Identity Theft
I just turned 65 and received my Medicare card. I see that the ID number on my card is the same as my Social Security number and on the back of the card it tells me I need to carry it with me at all times. What can I do to protect myself from identify theft if my purse and Medicare card are stolen?
Many people new to Medicare are surprised to learn that the ID number on their Medicare card is identical to their Social Security Number (SSN). After all, we are constantly warned not to carry our SSN around with us, because if it is lost or stolen then we might be victims of identity theft.
But the Medicare ID is more than an identifier. It’s proof of insurance. Beneficiaries need to show their Medicare card at the doctor’s office and the hospital in order to have Medicare pay for treatment.
Over the years, many consumer advocates have called for a new form of Medicare identification. The Centers for Medicare & Medicaid Services, which administers Medicare, also acknowledges the problem, but so far nothing has been done.
One of the main reasons is because it would cost an estimated $255 million to $317 million to fix it. That is just the direct cost to the federal government. That cost doesn’t include the expense to states, physicians and other healthcare providers to adjust their recordkeeping systems.
Other government health systems like the Department of Veterans Affairs and the Department of Defense have already begun using ID numbers that are different from SSNs, but no one knows when Medicare will follow suit.
In the meantime, here are some tips offered by various consumer advocate groups that can help keep your Medicare card safe and out of the hands of identity thieves.
Protect Your Card
For starters, AARP suggests that you simply don’t carry your Medicare card at all because it’s not necessary. Most healthcare providers already have their patients in their electronic systems and know how to bill you.
If you feel more comfortable carrying your Medicare card with you, then the Privacy Rights Clearing House, a national consumer resource on identity theft, recommends that you make a photocopy of your card and cut it down to wallet size. Then use scissors to cut out the last four digits of your SSN, or take a black marker and cross them out and carry that instead.
You will, however, need your actual Medicare card with you the first time you visit a new health care provider. That provider will likely want to make a photocopy of it for their files.
If you’re worried that you’ll need your card in an emergency situation in order to get care, you should know that emergency personnel cannot refuse you care until you show an insurance card. Although you’ll need to come up with billing information before leaving a hospital, that doesn’t mean you won’t receive care.
Lost or Stolen Cards
If your Medicare card does happen to get lost or stolen, you can replace it by calling Social Security at 800-772-1213. You can also apply for a new card online at ssa.gov/medicarecard or go to your local Social Security office.
If your Medicare card has been lost or stolen, you will need to watch out for Medicare fraud. You can do this by checking your quarterly Medicare summary notices for services or supplies you did not receive. If you spot anything suspicious or wrong, call the Inspector General’s fraud hotline at 800-447-8477.
If you need help identifying Medicare fraud, contact your state Senior Medicare Patrol program. See smpresource.org or call 877-808-2468 for contact information.
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 free and 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 our retirement. 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

IRS Identity Theft Fraud Limits
On July 1, IRS Commissioner John Koskinen spoke to CPAs and other tax return preparers at a Tax Forum in Chicago. One of his topics was the continued IRS effort to combat identity theft and tax refund fraud. As part of this effort, starting in January of 2015 there will be a maximum of three electronic refund payments made to any one bank account. Any additional payments will require a paper check.
Koskinen stated, “We realize that there are some legitimate reasons why taxpayers would have multiple refunds going to the same account. Parents may have children named on their bank account, for example. But direct deposit is also an easy way for an identity thief to quickly divert funds to a bank account and cash out, and we want to put a stop to that.”
The new policy is a continuation of IRS efforts to combat identity theft. In 2013, the IRS identified 5.7 million suspicious tax returns. The potential refunds from these returns were $18 billion. The service also started 700 new investigations in an effort to identify potential thieves who are involved in tax refund fraud. Koskinen noted that it had previously taken 300 days to resolve an identity theft case, but the current IRS effort has reduced that to approximately 120 days. He hopes to continue to reduce identity theft in the future.
Another change that he highlighted at the conference is a new Form 1099-K to require reporting about cash transactions. Koskinen noted, “The new reporting requirement was enacted because Congress realized that cash transactions were the source of much of the income underreporting by small businesses.” He noted that some businesses were not reporting cash and therefore generating an unfair advantage against their competitors.
Koskinen offered an example of potential IRS action if there is a discrepancy. He noted, “If nearly all suburban convenience stores report less than 60% of their revenue from payment cards, but one store shows 98%, we can now see that difference, and we might ask the business owner to explain it.”
The IRS will continue to pursue changes that facilitate collection of the proper tax and refund of the appropriate amounts. Commissioner Koskinen believes that this is beneficial for all taxpayers who are currently paying their fair share of taxes.
FINANCES

Stocks - Bed, Bath & Beyond Disappoints
Bed, Bath & Beyond, Inc. (BBBY), a retailer of domestic merchandise, reported its quarterly earnings on Wednesday, June 25. The company disappointed investors by reporting a decrease in net income compared to last year due to increasing costs.
Bed, Bath & Beyond reported quarterly net sales of $2.66 billion. This represents an increase from the comparable quarter last year when the company reported net sales of $2.61 billion.
Co-Chairman Warren Eisenberg commented on the future of Bed, Bath and Beyond at the earnings conference call. “We believe that throughout the United States and Canada, there is an opportunity to operate in excess of 1,300 Bed, Bath & Beyond Stores as well as grow our Cost Plus World Market, Christmas Tree Shops andThat!, and buybuy BABY concepts from coast to coast. At the same time, we continue to make substantial capital investments in our online, mobile, and social media channels to enhance our customer’s overall experience.”
The company reported net income of $187.05 million for the quarter. This represents a decrease of 7.6% from the same quarter last year when the company reported net income of $202.49 million.
Declining net income and gross profit margins are both signs that Bed, Bath & Beyond is moving in the wrong direction. Gross profit for 2013 was about 39.7% of net sales compared with 40.2% of net sales during 2012. As costs increase and competition tightens Bed, Bath & Beyond is facing an increasingly difficult environment.
Bed, Bath & Beyond, Inc. (BBBY) shares ended the week of 6/30 at $59.35, up 3.36% for the week.
Nike Scores at the World Cup
Nike, Inc. (NKE), an international retailer of sports apparel and accessories, reported its latest quarterly and annual earnings on Thursday, June 26. The company’s bottom line has benefited from the fervor surrounding this year’s World Cup in Brazil.
The company reported quarterly revenue of $7.43 billion and annual revenue of $27.8 billion. These figures represent an increase of 11% and 10%, respectively, from the same period last year when Nike reported quarterly revenue of $6.7 billion and annual revenue of $25.31 billion.
“These results demonstrate the energy and excitement NIKE brings to the market,” said President and CEO Mark Parker. “Our ability to relentlessly innovate for consumers drove our growth in FY14, and will continue to fuel it for years to come. And as we grow, we remain focused on managing all areas of our business to drive sustainable, profitable growth for our shareholders.”
Nike reported quarterly net income of $698 million and annual net income of $2.69 billion. The company’s annual net income increased 10% year-over-year from $2.45 billion in fiscal 2013.
The World Cup provided Nike with an excellent opportunity for worldwide exposure and it has taken advantage. According to the company, there are more players wearing Nike shoes than all other brands combined.
Nike Inc. (NKE) shares ended the week of 6/30 at $78.45, up 1.2% for the week.
Walgreen Co. Reports Solid Earnings
Walgreen Co. (WAG), operator of a chain of drugstores throughout the United States, reported its latest quarterly earnings on Tuesday, June 24. The company reported increased revenue and net income, but investors are still being cautious.
The company reported net sales of $19.4 billion for the quarter. This represents an increase from the comparable period last year when the company reported net sales of $18.3 billion.
“We continued to see improving top-line growth in the third quarter driven by increased daily living sales and strong increases in both prescriptions filled and our pharmacy market share,” said Walgreens President and CEO Greg Wasson. “At the same time, we are experiencing increased pressure on pharmacy gross profit margins. We maintained solid expense control in the third quarter to offset some of this pressure while understanding that there is more to be done. We will be accelerating our optimization efforts, including taking additional steps to lower expenses companywide. In addition, our joint venture with Alliance Boots continues to generate significant benefits.”
Walgreens reported quarterly net income of $764 million. This represents an increase from the same quarter last year when the company reported net income of $624 million.
While the latest earnings report showed increased revenue and net income year-over-year, there is uncertainty surrounding Walgreen’s future performance. Walgreen purchased a 45% stake in the European drugstore chain, Alliance Boots, in 2012. As part of the agreement Walgreens has the option to purchase the remaining 55% stake in 2015. The company has yet to disclose how it plans to move forward. With this potential purchase looming large, many investors have decided to take a wait-and-see attitude with respect to purchasing Walgreen shares.
Walgreen Co. (WAG) shares ended the week of 6/30 at $73.98, down 0.7% for the week.
The Dow started the week of 6/30 at 16,852 and closed at 17,068 on 7/3. The S&P 500 started the week at 1,961 and closed at 1,985. The NASDAQ started the week at 4,398 and closed at 4,486.
Bonds - Treasury Yields Rise On Jobs Report
Treasury prices fell causing yields to rise to a two-month high after the U.S. Department of Labor released its latest employment report on Thursday, July 3. The jobs report showed an improving jobs market which in turn led to speculation that the Fed might increase borrowing rates more quickly than previously expected.
The report showed an addition of 288,000 jobs in June. This number was greater than the median projection of 215,000 jobs economists expected. In addition, the unemployment rate dropped to 6.1% which is the lowest level since September 2008. The data also indicated that the long-term unemployed are having an easier time finding work. The number of long-term unemployed fell to 3.1 million.
This improving employment market is leading to speculation that the Federal Reserve will raise its benchmark borrowing rate before June of next year. “The Fed should take notice,” said Richard Schlanger, Vice President at Pioneer Investments. “It’s just more evidence that there’s underlying improvement in employment and it’s not quite as dire as Yellen thinks it is. We seem to have definitely turned the corner here.” That speculation is causing movement in the market and Treasury yields to rise.
The 10-year Treasury note yield rose two basis points to 2.64% during afternoon trading on Thursday, July 3. The 10-year yield reached as high as 2.69% during early Thursday trading, the highest level since May 2. “We do expect that Treasury yields in the 10-year sector will migrate toward 3% over the second half of the year,” said Jay Barry, Interest-Rate Strategist with primary dealer JPMorgan Chase & Co. “That’s predicated on above-trend growth in the second half.”
The 10-year Treasury note yield finished the week of 6/30 at 2.65% while the 30-year Treasury note yield finished the week at 3.48%.
CDs and Mortgages - Interest Rates Hold Steady
Treasury prices fell causing yields to rise to a two-month high after the U.S. Department of Labor released its latest employment report on Thursday, July 3. The jobs report showed an improving jobs market which in turn led to speculation that the Fed might increase borrowing rates more quickly than previously expected.
The report showed an addition of 288,000 jobs in June. This number was greater than the median projection of 215,000 jobs economists expected. In addition, the unemployment rate dropped to 6.1% which is the lowest level since September 2008. The data also indicated that the long-term unemployed are having an easier time finding work. The number of long-term unemployed fell to 3.1 million.
This improving employment market is leading to speculation that the Federal Reserve will raise its benchmark borrowing rate before June of next year. “The Fed should take notice,” said Richard Schlanger, Vice President at Pioneer Investments. “It’s just more evidence that there’s underlying improvement in employment and it’s not quite as dire as Yellen thinks it is. We seem to have definitely turned the corner here.” That speculation is causing movement in the market and Treasury yields to rise.
The 10-year Treasury note yield rose two basis points to 2.64% during afternoon trading on Thursday, July 3. The 10-year yield reached as high as 2.69% during early Thursday trading, the highest level since May 2. “We do expect that Treasury yields in the 10-year sector will migrate toward 3% over the second half of the year,” said Jay Barry, Interest-Rate Strategist with primary dealer JPMorgan Chase & Co. “That’s predicated on above-trend growth in the second half.”
The 10-year Treasury note yield finished the week of 6/30 at 2.65% while the 30-year Treasury note yield finished the week at 3.48%.
Interest Rates Hold Steady
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, July 3. Results showed mortgage rates remained largely unchanged for the week of June 30.
The 30-year fixed rate mortgage averaged 4.12% this week. This represents a slight decrease from last week when the fixed mortgage rate averaged 4.14%. Last year at this time, the 30-year fixed rate mortgage averaged 4.29%.
This week, the 15-year fixed rate mortgage averaged 3.22%. This is the same as last week when it averaged 3.22%. One year ago at this time the 15-year fixed rate mortgage averaged 3.39%.
Frank Nothaft, Vice President and Chief Economist at Freddie Mac, commented on this week’s results. “Mortgage rates were little changed from the previous week and remain below levels seen the same time last year, which should provide some help with homebuyer affordability in many markets. Recent housing data was better with pending home sales up 6.1% in May and overall constructions spending showing a slight improvement with private residential spending now up 7.5% on a yearly basis.”
The money market fund finished the week of 6/30 at 0.4%. The 1-year CD finished at 0.7%.
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Send us your name and contact information by reply email and indicate “I am a Nazarene Legacy Partner” and we will add your name to our NLP honor roll. To model generosity inspires others to do the same. Thank you for your interest in gift planning. To access any of this updated financial and gift planning information, please select our website.
Church of the Nazarene Foundation
17001 Prairie Star Parkway, Suite 200
Lenexa, KS 66220 United States
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