Business
This Father's Day, give Dad a financial tool kit
Father's Day is almost here. If your father is handy around the house, you might be considering giving him tools of some kind. Of course, drills, sanders, saws and screwdrivers make excellent gifts, but this year, why not give Dad something that can help him build his future? Specifically, why not give him a "financial tool kit"?
What could go into this tool kit? Here are a few suggestions:
Stocks - You may want to give shares of a company that produces products or services that your father uses. If you're going to give some of your own shares, you'll need to know what you originally paid for the stock, how long you've held it and its fair market value at the date of the gift. Your father will need this information to determine gains or losses if he decides to sell the stock.
Bonds - If your father is at or near retirement age, he might benefit from the interest payments provided by bonds. If you give your father a municipal bond, the interest is free from federal taxes, and if the municipality that issues the bond is located in your father's state, the interest also may be exempt from state and local taxes. However, some municipal bonds - particularly airport and housing bonds - might be subject to the alternative minimum tax (AMT), so you'd want to be pretty familiar with your father's tax situation before giving him an AMT-susceptible bond.
IRA contribution - As long as your father is working, he can contribute to a traditional or Roth IRA - and he should, because an IRA offers tax advantages and a wide array of investment options. Your father can put in up to $6,000 to an IRA if he's 50 or older, or $5,000 if he's under 50. While you can't make a deposit into your father's IRA, you can give him some money for that purpose.
Education - Even if your father has been investing for a while, he could probably still benefit from some additional knowledge. Consider giving him a subscription to a magazine that focuses on financial issues. Or you might want to give a book on investing, such as Dr. Jeremy Siegel's Stocks for the Long Run, generally considered one of the most valuable and "user-friendly" books for both new and experienced investors. A word of caution, though: Stay away from those books that seem to "promise" huge investment success if readers follow the techniques described by the author.
Games - You can find a variety of investment-related games that are both fun and informative. These games often use real-life scenarios to depict the various factors that go into investment decisions and the equally various results that can follow. You can also choose games that focus on other financial issues, such as managing cash flow. You can find these games in the old-fashioned "board game" format and as computer software. A quick search on the Internet will turn up plenty of these games.
Put some of these suggestions to work to create a financial "toolbox" for your dad this Father's Day. He'll likely appreciate your generosity - and he'll be able to put the "tools" to good use.
Brian D. Humphrey is an investment broker and financial management consultant.
- Business
-
- The good, the bad and the opportunities As an investor, you often may have to digest a great deal of information, some positive and some negative. And right now, you can find both the good and the bad — but most importantly, you can find investment opportunities.
- Sheets appointed to NFHS The National Federation of State High School Associations (NFHS) has announced the appointment of David Sheets of Shelbyville to a four-year term on the NFHS Publications Committee.
- Dr. Strickland earns international recognition Dr. James Strickland, one of the newest members of the medical and surgical staff at Rush Memorial Hospital, was recently awarded the Pioneer in Hand Surgery Award by the International Federation of Societies for Surgery of The Hand, (IFSSH).
- Can you save for retirement and college? With local schools back in session, you may be thinking about the day in which you’ll be sending your children off to college. Can you afford to help them pay for school while still saving for your own retirement?
-
10,000 Safety Observation
Emerson Climate Technologies' Rushville plant recently completed its 10,000th safety observation.
-
Armstrong named to Citizens board
Dr. Richard A. Armstrong recently joined the board of directors of Citizens State Bank of New Castle.
- Are municipal bonds right for you? Tax season “officially” ended on April 15. Yet you can explore tax-smart investment opportunities all year round.
- Generation X’ers must consider needs of three generations If you’re a member of Generation X -- the age group born between 1963 and 1981 -- you may well be in the busiest time of your life.
-
Students get real world experience at Farm Credit offices
How do you get a job without experience? And how do you get experience without a job?
- Navigating your way through the investment world You may not realize it, but July 24 is Amelia Earhart Day. July 24 was chosen because it’s the birthday of perhaps the most famous female aviator in history.
- More Business Headlines
