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Monday Money Report

| November 18, 2019

The market was up again last week, with the Dow Jones Industrial Average crossing over 28,000. The Dow’s record-breaker was largely fueled by Apple’s growth; that stock contributed 421 points to the index since the Dow reached 27,000. The S&P was up as well, reaching a closing high of 3,120.

If you tuned in last week, you may remember we discussed Required Minimum Distributions, or RMDs. If you are taking RMDs and are 70 ½ or older, another option is to make Qualified Charitable Donations from your qualified accounts (that is, tax-advantaged retirement accounts such as IRAs and 401Ks).

Generally speaking, gifts made to a charity or non-profit organization are tax deductible, if you currently itemize your deductions. But with the larger standard deduction, fewer Americans itemize their tax deductions. Which means you aren’t able to get a tax break for the gift you made. On top of that, the RMD you are forced to take can increase the amount of your social security that is subject to taxes, or cause your Medicare premiums to increase due to means testing.

If you are charitably inclined, a Qualified Charitable Donation, or QCD, may help. A QCD is a gift to a non-profit directly from a qualified account. The money goes straight to the non-profit, and, while it counts towards your RMD, the amount is not included in your taxable income. If you are taking RMDs, this is a strategy to consider. You should have a discussion with your financial and tax advisors.

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Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Great Valley Advisor Group, a Registered Investment Advisor. CovingtonAlsina and Great Valley Advisor Group are separate entities from LPL Financial.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice.

The opinions voiced in this show are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult with your attorney, accountant, and financial advisor or tax advisor prior to investing.