As we know, this is the time of year set aside for giving thanks for what we have, and through the following holiday season, expressing our appreciation of those we value, through gifts.  One of those avenues of giving is through investment vehicles, which we will explore in more detail through the following weeks.  There are a number of ways to give, beyond the more traditional forms.

Many of us received savings bonds as children, envelopes that we opened and were quickly claimed by our parents for safekeeping, leaving us with the thought that perhaps we hadn’t gotten anything even though we were told to say “thank you”.  As we were older we realized what we had been given.  Some may be used to receiving stock certificates from the company that employs their parents or their unmarried uncle every year. You may decide to take out a life insurance policy on yourself with someone much younger named as the beneficiary.  There are a few forms of investment vehicles now that weren’t available for your grandparents.  529 college savings plans allow you to put aside money towards higher education for a particular individual.  Specific accounts may be set up for minor beneficiaries.  You may which to start a mutual fund that allows you to automatically contribute monthly, for the benefit of another, for fairly small monthly amounts.  The federal government allows you to contribute up to $12,000/yr/beneficiary without having to pay gifting taxes; married couples may contribute $24,000/yr/beneficiary. 

This is also the time of year for giving to strangers.  The ring of the Salvation Army bell is reminiscent of Holiday shopping.  Grocery stores, community centers, and churches have food drives ongoing.  Not-for-profits are sending you holiday stamps and requesting donations in exchange.  Toy stores look for extra purchases that you leave in the store.   Layaway angels may request to pay towards a family’s layaway items, leaving the family selected more money for necessary items.  A number of avenues are also available to give to charities through investments.  These can be great tax-savings vehicles.  Gifts may be given straight to a specific organization in the form of cash, shares of stocks, mutual funds, bonds, etc.   Charitable remainder trusts may contribute to your family’s well-being while you are alive, and pass onto the charity upon your death.  Be sure to consult a financial advisor about these, and other, estate-planning tools.

As you sit down to Thanksgiving this year, whether with friends, family, your goldfish, or strangers, remember there are ways to contribute towards the people and groups you want to support.  You can make a difference in a variety of ways, some for small amounts of money.  Happy Thanksgiving!