The holiday season is a time for giving, and while gifts wrapped in shiny paper bring immediate joy, there’s another kind of gift that lasts far longer—the gift of financial security and generational wealth. By giving financial assets instead of traditional presents, you can embrace generational wealth planning and create a legacy that benefits your loved ones for years to come. Let’s explore how you can make the season truly unforgettable with financial gifts that keep on giving.
How Financial Gifts Build Generational Wealth
Financial gifts aren’t just about transferring money—they’re about teaching values, providing security, and creating opportunities. These gifts can help loved ones pay for education, start a business, buy a home, or save for their own futures. By thinking beyond the short-term joy of a physical gift, you can contribute to their long-term success.
Smart Financial Gift Ideas
Here are a few meaningful ways to give the gift of wealth this holiday season:
Stocks or ETFs: Introduce your family to the world of investing by gifting shares in companies they admire or exchange-traded funds (ETFs) that offer diversification.
529 Plan Contributions: Help a child or grandchild save for college with a contribution to a 529 education savings plan. This gift grows tax-free when used for qualified education expenses.
Roth IRA Contributions: If your loved one has earned income, you can contribute to their Roth IRA, setting them up for tax-free growth and withdrawals in retirement.
Savings Bonds: A classic and secure gift, U.S. savings bonds offer a low-risk way to help your loved ones build wealth over time.
Custodial Accounts: Open a custodial account for a minor, giving them a head start on saving and investing for their future.
Financial Literacy Tools: Gift a subscription to a personal finance app, an investment platform, or even books that inspire financial education.
The Tax Advantages of Giving
Financial gifts can also come with tax benefits for the giver. For example:
Annual Gift Exclusion: You can give up to $17,000 per recipient in 2024 without incurring gift taxes. Couples can double this amount, gifting up to $34,000 per recipient.
Education Savings Contributions: Contributions to 529 plans can qualify for state tax deductions in many states.
By taking advantage of these tax benefits, you can maximize the impact of your financial gifts while reducing your own tax burden.
How to Make It Personal
The best financial gifts are thoughtful and tailored to the recipient’s needs and goals. For example:
A young professional might appreciate help starting their first investment account.
Parents of young children might value a contribution toward their kids’ education.
A retiree might benefit from assistance with estate planning or financial advice.
Pair your gift with a note explaining its purpose and how it can help them achieve their dreams. This personal touch adds meaning and encourages them to make the most of your gift.
Start Building Your Legacy Today
This holiday season, think beyond the fleeting joy of traditional gifts and focus on creating lasting impact. By giving the gift of financial security, you’re not just spreading holiday cheer—you’re building a brighter future for the people you love.
At Halter Ferguson Financial, we specialize in helping families create financial plans that build wealth across generations. If you’re ready to explore how you can give the gift of financial security this year, contact us today to start planning your legacy.