Sharp Financial ServicesJennifer M. Sharp, CFP®702 Carilion LaneGreenville, SC 29617(864)605-7133 office(607)279-8613 celljsharp@fscadvisor.comwww.sharpfinancialservices.net

December 2019Tips for Managing Your HolidaySpending

Ten Year-End Tax Tips for 2019

Protecting Yourself Against Identity Theft

Peace on earth

Sharp Financial QuarterlyPlan. Build. Protect.

How to Give Like a Billionaire When You Don't Have Billions to Give

See disclaimer on final page

Since Bill andMelinda Gates andWarren Buffettcreated the GivingPledge in 2010,more than 200 of theworld's wealthiestindividuals andcouples havecommitted to givingthe majority of their

wealth to philanthropic or charitable causes.

Although the Giving Pledge only invitesbillionaires to join, "it is inspired by the exampleset by millions of people at all income levelswho give generously — and often at greatpersonal sacrifice — to make the world a betterplace."*

You don't have to be a billionaire to embracethe spirit of the Giving Pledge: When peoplecome together to give, regardless of wealth,they can improve the lives of others.

Decide which causes matter most toyouGiving Pledge billionaires are a diverse group,coming from 23 countries and ranging in agefrom their 30s to their 90s. While they're alldedicated to philanthropy, they support manydifferent causes.

For example, Giving Pledge member SaraBlakely pledged to help empower women toprosper when she signed the pledge in 2013.She has since donated money to build homesfor impoverished families and fundedentrepreneurial programs for girls.

One of the newest signers of the Giving Pledge,Robert F. Smith, focuses on causes thatsupport equality for African Americans. In May2019, he told graduates of Morehouse Collegethat he was paying off their student loans via agrant that is worth an estimated $40 million.

What causes are you passionate about? Whatare your values? Do you want to make animpact locally or globally? Aligning the causesyou support with what's meaningful to you canhelp deepen your long-term commitment togiving back.

Write down why you are givingDirector and producer George Lucas and hiswife Mellody Hobson joined the Giving Pledgein 2010. Like other members, they wrote astatement explaining why they wanted to joinand what they intended to accomplish.

"My pledge is to the process," Lucas wrote; "aslong as I have the resources at my disposal, Iwill seek to raise the bar for future generationsof students of all ages. I am dedicating themajority of my wealth to improving education."*

Lucas fulfilled part of this pledge by creating theGeorge Lucas Educational Foundation totransform education through innovation.

Writing down your own intentions can helpclarify your philanthropic goals and serve as areminder of the impact your gift could have.

Inspire and learn by going publicThe Giving Pledge hopes to "inspireconversations, discussions, and action, not onlyabout how much, but also for what purposes/towhat end."*

Even if you normally prefer to keep yourcharitable work private, being open about thecauses you support might help inspire others togive back.

Other perks of going public include being ableto exchange ideas and lessons learned withothers, and the opportunity to meet people inyour community or around the world who shareyour commitment.

Connect generations through givingA major goal of the Giving Pledge is toencourage long-term family giving that will helpmake the world a better place for generations tocome.

Sharing your passion for helping others withyour children or grandchildren can be especiallyrewarding. Setting family goals, choosingworthy causes, and volunteering together areways that you can help unite generations andmake philanthropy part of your family's legacy.* To learn more about the Giving Pledge and thosewho have signed it, visit givingpledge.org.

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Tips for Managing Your Holiday SpendingLike almost everything else these days, theholidays have become a barrage of options andchoices, with nearly limitless opportunities tooverspend. Here are some tips to help youmake sure your family's spending remains incheck this holiday season.

Develop a spending strategyFirst and foremost, develop a budget.Involving family members will help youestablish and maintain realistic expectations atthe outset. Remember to include not just gifts,but also holiday meals and parties, travel,greeting cards and stamps, gift wrap,decorations, and any other category you deemnecessary. This is also a good time to committo using cash or charging no more than you canpay off in one month.

Next, devise a method of tracking all yourpurchases, receipts, gift recipients, and thelocations of hidden gifts that you mightotherwise forget about. This will make lifeeasier as the chaos ramps up.

Review your credit cards to see if you haveany perks. Could you use earned points fortravel, or cash-back and gift card rewards tohelp defray costs?

Track down old gift cards and put them touse now. If you think you'll never use them,trade them in for cash on a discounted gift cardwebsite. There, you can sell your old cards andeven buy new e-gift cards at a discounted rate,which you can then give as gifts or use for yourown purchases.

Put technology to work for you. You can findapps that offer cash back if you shop online;alert you to online coupons available at nearbystores; round up your purchases to the nearestdollar and put the difference into a savingsaccount; and track your online purchases, scanother stores for better prices, and thenautomatically email the original stores on yourbehalf to take advantage of the price-matchguarantees. There are myriad options available,so be sure to check reviews andprivacy/security measures before downloading.

Think creativelyGifts. Take time to carefully scan allpromotional materials before you head out thedoor or open a browser, because great dealsare often available for limited periods of time.For example, some stores have offeredgenerous gift cards in exchange for buyingcertain products on Black Friday.

Consider giving experiences rather than gifts,which happiness experts say could lead tomore sustained levels of well-being. In fact, you

may find that you'll spend less overall by givingone or two memorable experiences instead ofthe usual pile of items.

Create meaningful yet inexpensive gifts, suchas photo books, calendars, and family recipebooks, using online apps and services. Thisidea is especially appropriate for gifts fromchildren to older family members.

For larger or extended families, make a gameout of gift giving. Consider a "Yankee swap," orimplement a gift exchange, where everyone israndomly assigned a person for whom they buyone special gift. Or consider having the entirefamily chip in a certain amount per person anddonating to a favorite charity or sponsoringanother family in need.

Food. Nonperishable holiday-related goodstypically go on sale in late fall, so plan aheadand stock up. Also keep an eye out for specials;for example, some grocery stores offer a freeturkey around Thanksgiving when you spend acertain amount on groceries.

Party planning, decorations, gift wrap.Consider buying the bulk of these supplies atdeep-discount stores and splurging on a fewspecial highlight items, such as napkins with anelaborate design, centerpieces of fresh flowers,or fancy bows. If you live in an area whereevergreens, autumn berries, and pine conesare plentiful, take advantage of this potentiallysophisticated, yet completely free, decor. Orcreate even more memories by hosting anornament-making party. Use old costumejewelry or other items to make ornaments anddecorations with sentimental value.

Travel. During one of the busiest travel times ofthe year, deals can be hard to find. Here aresome tips:

• Be flexible. If you can postpone yourcelebration until after the holidays, you maybe able to save substantially on travel costs.(You can also shop the post-holiday sales forgifts!)

• Avoid airline baggage fees by using carry-onluggage.

• Use fare-tracking apps to find the best deals.• Cost-compare alternative modes of travel,

such as train and ridesharing.

It's never too early to start savingFinally, get a jump on next year's festivities bystocking up on supplies during post-holidaysales, opening a savings account with a goal ofsaving at least as much as you spend this year,and shopping as early as possible to spreadspending throughout the year.

How much will you spendthis year?

In October 2018, the NationalRetail Federation projected thatconsumers were planning tospend more than $1,000 onholiday-related purchases overthe entire season, which was a4% increase over 2017. For2019 figures, typically releasedin late October, please visit theorganization's website.

There's an app for that, too?

You can even find an app thatwill help you locate your car inthe shopping mall parking lot.

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Ten Year-End Tax Tips for 2019Here are 10 things to consider as you weighpotential tax moves between now and the endof the year.

1. Set aside time to planEffective planning requires that you have agood understanding of your current taxsituation, as well as a reasonable estimate ofhow your circumstances might change nextyear. There's a real opportunity for tax savingsif you'll be paying taxes at a lower rate in oneyear than in the other. However, the window formost tax-saving moves closes on December31, so don't procrastinate.

2. Defer income to next yearConsider opportunities to defer income to 2020,particularly if you think you may be in a lowertax bracket then. For example, you may be ableto defer a year-end bonus or delay thecollection of business debts, rents, andpayments for services. Doing so may enableyou to postpone payment of tax on the incomeuntil next year.

3. Accelerate deductionsYou might also look for opportunities toaccelerate deductions into the current tax year.If you itemize deductions, making payments fordeductible expenses such as medicalexpenses, qualifying interest, and state taxesbefore the end of the year (instead of payingthem in early 2020) could make a difference onyour 2019 return.

4. Factor in the AMTIf you're subject to the alternative minimum tax(AMT), traditional year-end maneuvers such asdeferring income and accelerating deductionscan have a negative effect. Essentially aseparate federal income tax system with itsown rates and rules, the AMT effectivelydisallows a number of itemized deductions. Forexample, if you're subject to the AMT in 2019,prepaying 2020 state and local taxes probablywon't help your 2019 tax situation, but couldhurt your 2020 bottom line. Taking the time todetermine whether you may be subject to theAMT before you make any year-end movescould help you avoid a costly mistake.

5. Bump up withholding to cover a taxshortfallIf it looks as though you're going to owe federalincome tax for the year, especially if you thinkyou may be subject to an estimated tax penalty,consider asking your employer (on Form W-4)to increase your withholding for the remainderof the year to cover the shortfall. The biggestadvantage in doing so is that withholding is

considered as having been paid evenlythroughout the year instead of when the dollarsare actually taken from your paycheck. Thisstrategy can also be used to make up for low ormissing quarterly estimated tax payments. Withall the recent tax changes, it may be especiallyimportant to review your withholding in 2019.

6. Maximize retirement savingsDeductible contributions to a traditional IRA andpre-tax contributions to an employer-sponsoredretirement plan such as a 401(k) can reduceyour 2019 taxable income. If you haven'talready contributed up to the maximum amountallowed, consider doing so by year-end.

7. Take any required distributionsOnce you reach age 70½, you generally muststart taking required minimum distributions(RMDs) from traditional IRAs andemployer-sponsored retirement plans (anexception may apply if you're still working forthe employer sponsoring the plan). Take anydistributions by the date required — the end ofthe year for most individuals. The penalty forfailing to do so is substantial: 50% of anyamount that you failed to distribute as required.

8. Weigh year-end investment movesYou shouldn't let tax considerations drive yourinvestment decisions. However, it's worthconsidering the tax implications of any year-endinvestment moves that you make. For example,if you have realized net capital gains fromselling securities at a profit, you might avoidbeing taxed on some or all of those gains byselling losing positions. Any losses over andabove the amount of your gains can be used tooffset up to $3,000 of ordinary income ($1,500if your filing status is married filing separately)or carried forward to reduce your taxes in futureyears.

9. Beware the net investment incometaxDon't forget to account for the 3.8% netinvestment income tax. This additional tax mayapply to some or all of your net investmentincome if your modified adjusted gross income(AGI) exceeds $200,000 ($250,000 if marriedfiling jointly, $125,000 if married filingseparately, $200,000 if head of household).

10. Get help if you need itThere's a lot to think about when it comes to taxplanning. That's why it often makes sense totalk to a tax professional who is able toevaluate your situation and help you determineif any year-end moves make sense for you.

Timing of itemizeddeductions and theincreased standarddeduction

Recent tax law changessubstantially increased thestandard deduction amountsand made significant changesto itemized deductions. It maynow be especially useful tobunch itemized deductions incertain years; for example,when they would exceed thestandard deduction.

IRA and retirement plancontributions

For 2019, you can contributeup to $19,000 to a 401(k) plan($25,000 if you're age 50 orolder) and up to $6,000 totraditional and Roth IRAscombined ($7,000 if you're age50 or older). The window tomake 2019 contributions to anemployer plan generally closesat the end of the year, whileyou typically have until the duedate of your federal income taxreturn (not includingextensions) to make 2019 IRAcontributions.

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Sharp Financial ServicesJennifer M. Sharp, CFP®702 Carilion LaneGreenville, SC 29617(864)605-7133 office(607)279-8613 celljsharp@fscadvisor.comwww.sharpfinancialservices.net

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019

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To the extent that this material concerns taxmatters, it is not intended or written to beused, and cannot be used, by a taxpayer forthe purpose of avoiding penalties that may beimposed by law. Each taxpayer should seekindependent advice from a tax professionalbased on his or her individual circumstances.

These materials are provided for generalinformation and educational purposes basedupon publicly available information fromsources believed to be reliable—we cannotassure the accuracy or completeness ofthese materials. The information in thesematerials may change at any time andwithout notice.

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