Today, I'd like to tell you a story of faithfulness, a story of a family who impacted their local church through their giving..
This is a story 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." Click here to read the rest of the story.
To learn more about the Church of the Nazarene Foundation, visit our website,www.NazareneFoundation.org. You can also contact us at 913.577.2983 orinfo@nazarenefoundation.org.
Blessings,
Kenneth R. Roney, J.D.
President
PERSONAL PLANNER
Caring for Minor Children
"Who would take our children? I am not sure anyone would be willing to take them," remarked Shelly to her attorney, Jim. "It's not that they aren't good children. They are all fine, but there are 11 of them! If something happens to Pat and me, who will take them?"
Personal Guardian for Minor Children
One very important decision for you to make when creating a plan is to decide who would be the guardian of your minor children. When you write your first will, it is very possible that you still have minor children at home. While you may not have 11 children and face the challenge that confronted Shelly and Pat, this is still a very crucial and important decision.
Your guardian will raise the children, teach them values, select the schools they attend and perform the functions of a parent. If you do not have a guardian selected in a will, a court may select a person. That person may not share your cultural background, your religion, your general world view, or any other aspects of the character that you think important for the person who raises your children. By selecting a guardian and an alternate in your will, you have a much better prospect of finding someone that you think is the right person to raise your children.
Two Parents
If there are two parents, normally the survivor will be selected as the guardian of the children. But if both were to pass away, then it would be necessary to select a guardian.
Even if you select a guardian, there could still be an objection or contest by other family members. The probate judge usually will approve your selection unless there is strong evidence that indicates the person is not qualified. For example, evidence of alcoholism, criminal background or a history of child abuse could lead the judge to select another person. However, in nearly all cases the person that you select is chosen because he or she is the best possible individual to raise your children.
Single Parent
There are several reasons why a person may be a single parent in our society. A single parent may never have been married, there could have been a divorce, or the spouse could have passed away. In all three cases, it is especially important for single parents to have carefully selected a guardian.
Blended Family
If you have divorced and remarried, it may be your desire to have your new spouse as the guardian for children from your first marriage.
Normally, children are placed with their biological parent. However, if you can show good reasons why it is in "the best interest of the child" for your new spouse to be guardian, the court may permit him or her to raise your children. It is desirable for you to write a letter that is retained with your will to explain your reasons why the biological parent is not a good choice and how your current spouse would be the best person to raise your children.
Property for Your Children
If you have a high level of trust in the person selected to be guardian, it is possible to transfer property outright to him or her. However, if you choose to entrust a guardian with your property, you need to recognize that the guardian will have complete control and may choose to use the property for other purposes. This may be an acceptable solution if you have moderate resources, but if your property is substantial, a trust may be a better choice.
Trust for Children
With a moderate to substantial amount of property, it is quite common to create a trust. One person is selected as trustee to manage the property. He or she then transfers the income and, if required, principal to the guardian. The combination of one person managing the property and the guardian raising the children provides checks and balances that achieve the best result for the child.
SAVVY LIVING
How to Compare and Locate Senior Housing Options
Can you go over the different types of housing options available to seniors and recommend some good resources for locating and choosing one? I need to find a place for my elderly mother and I could use some help.
There are many housing options available to seniors, but the best option for your mom will depend on her needs and financial situation. Here is a rundown of the different levels of senior housing and some resources to help you search.
Independent Living: If your mom is in relatively good health and is self-sufficient, "independent living communities" are a good place to start. These communities typically offer fully functional apartments or townhomes to people over age 55. In addition, many of these communities also offer amenities such as meals served in a common dining area, housekeeping, transportation services and a variety of social activities.
To locate this type of housing, contact your Area Agency on Aging (call 800-677-1116 to get your local number) or use online services like newlifestyles.com and caring.com. Most of these communities are private-pay only and will cost from $1,000 to $4,000 or more per month.
If an independent living community is too expensive, another option is "senior apartments." These apartments are often subsidized by HUD for lower income seniors. You can locate these through your localhousing authority or online at hud.gov - click on "Find Rental Assistance."
Assisted Living: If your mom needs some help with daily living activities, an "assisted living facility" is another option. These facilities provide personal care (like bathing, dressing, eating, going to the bathroom) as needed, as well as meals, housekeeping, transportation, social activities and medication management. Many facilities also offer special care units for residents with dementia. Costs typically run from $2,000 to $5,000 or more per month. Most residents pay for assisted living from personal funds and some have long-term care insurance policies. However, some states now have voucher plans that let you use Medicaid money.
Another similar, but less expensive option is "board and care homes." These offer many of the same services as assisted living facilities but in a much smaller home setting.
Again, your Area Aging Agency is a good resource for finding these facilities, as are the previously listed senior housing locater websites. For help choosing a facility, the Assisted Living Federation of America offers an excellent guide at alfa.org/checklist.
Nursing Homes: If your mom needs ongoing medical and personal care, a "nursing home" that provides 24-hour skilled nursing care is the next option. To find a good one, use Medicare's nursing home compare tool at medicare.gov/nursinghomecompare. But be aware that nursing home care is very expensive, costing anywhere from $4,500 to $11,000 per month depending on location. Most residents pay from either personal funds, a long-term care insurance policy or through Medicaid after their savings are depleted.
Continuing-Care Retirement Communities (CCRC's): If your mom has the financial resources, a "CCRC" is another excellent option that provides all levels of housing (independent living, assisted living and skilled nursing home care) in one convenient location. However, these communities typically require a hefty entrance fee that can range from $20,000 to $500,000 or more, plus ongoing monthly service fees that vary from around $1,000 to over $5,000. For more information see carf.org/aging.
Need Help?
Consider hiring an aging life care expert (aginglifecare.org) who can evaluate your mom's situation and find appropriate housing for a fee - usually between $300 and $800. Alternatively, you can use a senior-care advising service like A Place for Mom (aplaceformom.com, 866-344-8005) for free. (They get paid from the senior living facilities in their network.)
Some other helpful resources include the National Clearinghouse for Long-Term Care Information (longtermcare.gov) and your State Health Insurance Assistance Program (shiptalk.org) that provides free counseling.
Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.
YOUR PLAN
Tax-Free Sale
Howard and Lynn were age 55 when they purchased some land outside of town. They thought it would be a good investment that they could later sell for a higher price.
Over the years, development from town has moved toward the property and their land is now next to a large commercial store. They now rent the property to the commercial store for overflow parking.
Howard: We have owned this property for over 10 years. It has been a good investment and increased in value. We have received just enough rental income in the last few years to pay the taxes. However, we now would like to sell.
Lynn: It would be nice if we could sell without paying a large tax. Our tax advisor has told us that if we were to sell, there would be a large capital gains tax. We also could use some tax deductions this year.
The good news is that Howard and Lynn were able to create a special trust called a charitable remainder unitrust and receive three very nice benefits.
- Bypass capital gain
- Increase income
- Charitable deduction
Lynn: Plus, we increased our income. The land was producing almost no income before. Now, we receive over $12,000 in income each year. This increased income is one of my favorite parts of the plan.
*Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your unitrust benefits may be different, you may want to click here to view a color example of your benefits.
WASHINGTON NEWS
Safeguarding Tax Records during Hurricane Season
On June 1, the IRS published IR-2015-83 and offered tips on safeguarding your financial and tax records. While the focus of the IRS letter was on the hurricane season, these helpful tips apply to other potential natural disasters such as tornadoes, earthquakes, fires or floods.
1. Duplicate Electronic Records – You should keep a second set of electronic records that include “bank statements, tax returns, identifications and insurance policies” in a safe location. You may save the records on a USB flash drive, an external hard drive or a CD. The electronic records may be retained in a waterproof safe or other container or could be transferred to an internet site.
2. Document Valuables – It is very helpful to take photos, videos and write written descriptions for valuable items from your home. IRS Publication 584 explains some of the best procedures to make a room-by-room list of various items. This information also will be useful for insurance purposes. Because all of this information can be stored in electronic form, you may wish to keep this with your other tax and financial backups. Another option is to send the information to a family member in a different city or state.
3. Emergency Plans – You should review your preparations for a natural disaster each year. A store of supplies may be quite appropriate. With a natural disaster, you may lose electricity and other utilities. Maintaining batteries or a backup generator could be very helpful. If there is a disaster that requires you to evacuate, it is best to have two or three routes to safe locations.
4. IRS Assistance – If you need copies of prior tax returns, you can obtain those from the IRS. Use Form 4506, Request for Copy of Tax Return, or call the IRS at 1-800-908-9946. The IRS will provide taxpayers with copies of previously-filed tax returns and Forms W-2.
Editor’s Note: A great annual project is to review and update your plan. Either January or July is a particularly good month for a review. You will want to update your flash drive with your latest financial and tax records. The USB flash drive could be maintained in a waterproof and fireproof safe at home, a safe deposit box or other secure location. If there is a major natural disaster, you want to be able to focus on maintaining basic needs for yourself and your family, rather than worrying about protecting your records.
FINANCES
Stocks - Cracker Barrel Reports Strong Earnings
Cracker Barrel Old Country Store, Inc. (CBRL) announced its third quarter results on Tuesday, June 2. The company's results easily surpassed pre-release estimates.
Cracker Barrel reported that revenue for the quarter increased 6.3% to $683.7 million. Analysts had expected revenue to be slightly lower at $680 million.
"We believe that our strong sales performance in the quarter is the result of general increases in consumer spending, our strong value positioning, and the continuing success of our marketing initiatives," said Cracker Barrel President and CEO Sandra B. Cochran. "Our margin improvement in the quarter reflects the continuing implementation of our cost savings initiatives and the leverage of higher sales."
Earnings during the quarter increased 21% to $1.49 per share. This was significantly higher than analysts' estimates calling for $1.37 per share.
This quarter, Cracker Barrel reported its fifth straight quarter of double digit earnings per share growth. In addition, the company also experienced a 5.2% comparable store sales increase and raised its fiscal guidance for the rest of the year. Following the earnings release Cracker Barrel's stock price rose 4.7% to $146.33, though that was below its high of $149.94 set on March 20.
Cracker Barrel Old Country Store (CBRL) shares ended the week at $145.86, up 3.3% for the week.
Dollar General Reports Quarterly Results
Dollar General Corporation (DG) reported its first quarter results on Tuesday, June 2. The company reported better-than-expected profit for the quarter.
The company reported that net sales during the quarter increased 8.8% to $4.92 billion. This was slightly below estimates that net sales would be $4.94 billion.
"In the first quarter, we made solid progress implementing our key initiatives with balanced growth across both consumables and non-consumable categories," said Dollar General's Chairman and CEO Rick Dreiling. "Compared to the first quarter of 2014, same-store sales improved 3.7% and gross margin expanded by 45 basis points, contributing to diluted EPS growth of 17%. Looking ahead, we are confirming our full year guidance based on our results for the first quarter."
Net income during the quarter was $253 million or $0.84 per share. This was better than pre-release estimates calling for earnings per share of $0.82.
Overall, Dollar General had a successful quarter as net income beat expectations. The company also reported that same-store sales increased 3.7%, though that was below expectations for 4.1% growth. In the past year Dollar General's stock price has risen 39%. Despite lower-than-expected sales growth this quarter, Dollar General still saw its stock price rise 3% following the earnings release.
Dollar General (DG) shares ended the week at $75.50, up 3.8% for the week.
Zumiez's Fiscal Guidance Disappoints
Zumiez, Inc. (ZUMZ), a specialty retailer of clothing, shoes and gear for snowboarders and skateboarders, announced its first quarter results on Thursday, June 4. The results matched expectations, but investors were disappointed in the company's fiscal guidance for the remainder of the year.
The company reported that net sale for the quarter increased 9% to $177.6 million. This figure was in line with expectations.
"While the pace of our domestic business slowed more than anticipated in April, this was offset by strong sales gains in Europe where growth momentum continues," said Zumiez CEO Rick Brooks. "Overall, we remain confident that our omnichannel strategy, authentic lifestyle positioning, and commitment to customer service provide us with strong competitive advantages that will deliver increased profitability and greater shareholder value over the long-term."
Zumiez reported that net income during the quarter was $2.8 million or $0.09 per share. This was a 12% increase over net income of $2.5 million during the comparable period last year.
Investors were no doubt pleased to see that Zumiez's quarterly earnings were in line with expectations. However, Zumiez announced that it expects revenue in the next quarter to be between $179 million and $183 million, which is below expectations. Since the beginning of the year Zumiez's stock price has fallen 23%. Following the earnings announcement on Thursday the stock price fell an additional 10% in after-hours trading.
Zumiez, Inc. (ZUMZ) shares ended the week at $24.00, down 20% for the week.
The Dow started the week of 6/1 at 18,018 and closed at 17,850 on 6/5. The S&P 500 started the week at 2,109 and closed at 2,093. The NASDAQ started the week at 5,095 and closed at 5,069.
Bonds - Jobs Report Drives Treasury Yields Higher
Cracker Barrel reported that revenue for the quarter increased 6.3% to $683.7 million. Analysts had expected revenue to be slightly lower at $680 million.
"We believe that our strong sales performance in the quarter is the result of general increases in consumer spending, our strong value positioning, and the continuing success of our marketing initiatives," said Cracker Barrel President and CEO Sandra B. Cochran. "Our margin improvement in the quarter reflects the continuing implementation of our cost savings initiatives and the leverage of higher sales."
Earnings during the quarter increased 21% to $1.49 per share. This was significantly higher than analysts' estimates calling for $1.37 per share.
This quarter, Cracker Barrel reported its fifth straight quarter of double digit earnings per share growth. In addition, the company also experienced a 5.2% comparable store sales increase and raised its fiscal guidance for the rest of the year. Following the earnings release Cracker Barrel's stock price rose 4.7% to $146.33, though that was below its high of $149.94 set on March 20.
Cracker Barrel Old Country Store (CBRL) shares ended the week at $145.86, up 3.3% for the week.
Dollar General Reports Quarterly Results
Dollar General Corporation (DG) reported its first quarter results on Tuesday, June 2. The company reported better-than-expected profit for the quarter.
The company reported that net sales during the quarter increased 8.8% to $4.92 billion. This was slightly below estimates that net sales would be $4.94 billion.
"In the first quarter, we made solid progress implementing our key initiatives with balanced growth across both consumables and non-consumable categories," said Dollar General's Chairman and CEO Rick Dreiling. "Compared to the first quarter of 2014, same-store sales improved 3.7% and gross margin expanded by 45 basis points, contributing to diluted EPS growth of 17%. Looking ahead, we are confirming our full year guidance based on our results for the first quarter."
Net income during the quarter was $253 million or $0.84 per share. This was better than pre-release estimates calling for earnings per share of $0.82.
Overall, Dollar General had a successful quarter as net income beat expectations. The company also reported that same-store sales increased 3.7%, though that was below expectations for 4.1% growth. In the past year Dollar General's stock price has risen 39%. Despite lower-than-expected sales growth this quarter, Dollar General still saw its stock price rise 3% following the earnings release.
Dollar General (DG) shares ended the week at $75.50, up 3.8% for the week.
Zumiez's Fiscal Guidance Disappoints
Zumiez, Inc. (ZUMZ), a specialty retailer of clothing, shoes and gear for snowboarders and skateboarders, announced its first quarter results on Thursday, June 4. The results matched expectations, but investors were disappointed in the company's fiscal guidance for the remainder of the year.
The company reported that net sale for the quarter increased 9% to $177.6 million. This figure was in line with expectations.
"While the pace of our domestic business slowed more than anticipated in April, this was offset by strong sales gains in Europe where growth momentum continues," said Zumiez CEO Rick Brooks. "Overall, we remain confident that our omnichannel strategy, authentic lifestyle positioning, and commitment to customer service provide us with strong competitive advantages that will deliver increased profitability and greater shareholder value over the long-term."
Zumiez reported that net income during the quarter was $2.8 million or $0.09 per share. This was a 12% increase over net income of $2.5 million during the comparable period last year.
Investors were no doubt pleased to see that Zumiez's quarterly earnings were in line with expectations. However, Zumiez announced that it expects revenue in the next quarter to be between $179 million and $183 million, which is below expectations. Since the beginning of the year Zumiez's stock price has fallen 23%. Following the earnings announcement on Thursday the stock price fell an additional 10% in after-hours trading.
Zumiez, Inc. (ZUMZ) shares ended the week at $24.00, down 20% for the week.
The Dow started the week of 6/1 at 18,018 and closed at 17,850 on 6/5. The S&P 500 started the week at 2,109 and closed at 2,093. The NASDAQ started the week at 5,095 and closed at 5,069.
Bonds - Jobs Report Drives Treasury Yields Higher
Treasury bonds rose on Friday, June 5 as traders sold off bonds following the release of an upbeat jobs report for the month of May. The rosy jobs report stoked fears that the Federal Reserve is once again on track to raise interest rates in September.
The Labor Department reported that the U.S. economy added 280,000 jobs during May, which exceeded forecasts expecting only 225,000 jobs to be added during the month. The unemployment rate ticked up slightly to 5.5% from 5.4% while there was a small downward revision in the jobs numbers for April to 221,000.
"I was pleasantly surprised," said Russell Price, Senior Economist at Ameriprise Financial. "This adds to the recent spate of positive data that shows the economy is really pulling out of its winter slump."
The upbeat jobs report resulted in a Treasury bond selloff that drove prices down and yields up. The 10-year bond yield briefly reached a high of 2.44, an increase of 9 basis points, before settling at a yield of 2.39%.
With the latest jobs report the U.S. economy has a rolling average of 207,000 jobs added over the past three months. Many analysts and investors now expect an improving economy to put the Federal Reserve back on track to raise interest rates in September as opposed to later in the year.
The 10-year Treasury note yield finished the week of 6/1 at 2.40% while the 30-year Treasury note yield finished the week at 3.11%.
CDs and Mortgages - Interest Rates Show Little Change
The Labor Department reported that the U.S. economy added 280,000 jobs during May, which exceeded forecasts expecting only 225,000 jobs to be added during the month. The unemployment rate ticked up slightly to 5.5% from 5.4% while there was a small downward revision in the jobs numbers for April to 221,000.
"I was pleasantly surprised," said Russell Price, Senior Economist at Ameriprise Financial. "This adds to the recent spate of positive data that shows the economy is really pulling out of its winter slump."
The upbeat jobs report resulted in a Treasury bond selloff that drove prices down and yields up. The 10-year bond yield briefly reached a high of 2.44, an increase of 9 basis points, before settling at a yield of 2.39%.
With the latest jobs report the U.S. economy has a rolling average of 207,000 jobs added over the past three months. Many analysts and investors now expect an improving economy to put the Federal Reserve back on track to raise interest rates in September as opposed to later in the year.
The 10-year Treasury note yield finished the week of 6/1 at 2.40% while the 30-year Treasury note yield finished the week at 3.11%.
CDs and Mortgages - Interest Rates Show Little Change
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, June 4. Interest rates showed little change this week as they continue to hover around their highest levelsof the year.
The 30-year fixed rate mortgage averaged 3.87% this week. This was unchanged from last week.
This week, the 15-year fixed rate mortgage averaged 3.08%. This number was down from last week when it averaged 3.11%.
"Mortgage rates were little changed for the week following mixed economic data before bond yields began moving higher Wednesday afternoon," said Len Kiefer, Deputy Chief Economist at Freddie Mac. "Although real GDP growth was revised down to a negative 0.7% annualized rate, the Institute for Supply Management reported a modest growth in the manufacturing sector in May. If the Wednesday surge of treasury yields persists, the impact on mortgage rates is likely to result in a bout of affordability shock to many housing markets across the country."
The money market fund finished the week of 6/1 at 0.4%. The 1-year CD finished at 0.6%.
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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.
The Global Church of the Nazarene Foundation
The 30-year fixed rate mortgage averaged 3.87% this week. This was unchanged from last week.
This week, the 15-year fixed rate mortgage averaged 3.08%. This number was down from last week when it averaged 3.11%.
"Mortgage rates were little changed for the week following mixed economic data before bond yields began moving higher Wednesday afternoon," said Len Kiefer, Deputy Chief Economist at Freddie Mac. "Although real GDP growth was revised down to a negative 0.7% annualized rate, the Institute for Supply Management reported a modest growth in the manufacturing sector in May. If the Wednesday surge of treasury yields persists, the impact on mortgage rates is likely to result in a bout of affordability shock to many housing markets across the country."
The money market fund finished the week of 6/1 at 0.4%. The 1-year CD finished at 0.6%.
____________________________
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.
The Global Church of the Nazarene Foundation
17001 Prairie Star Parkway, Suite 200
Lenexa, Kansas 66220 United States
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