Retirement In Sight: A Strategy for Monetary Gifts for Family

Have you ever thought about giving financial gifts to your kids or grandkids? Many affluent retirees and pre-retirees do this, often with an eye toward furthering family wealth.

First, the basics. The Internal Revenue Service for 2022 increased the yearly gift tax exclusion to $16,000, so as an individual taxpayer, you can gift up to $16,000 this year to a child, grandchild, relative (or any other person) without any federal gift or estate tax consequences. If you are married, this applies for your spouse as well. Gifts of $16,000 or less do not count against the lifetime exclusion amount for individual estates, set at $12.06 million for 2022 ($24.12 million for a married couple). 

Speaking of that $12.06 million lifetime exclusion amount, it could be halved in 2026 if the Tax Cuts and Jobs Act sunsets – so time may be of the essence for parents or grandparents who want to transfer portions of their wealth to heirs tax-free. As you think about choices for monetary gifts, you may want to have a look at your estate strategy documents to see that they are up to date. This update on monetary gifts is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax or legal professional before modifying your tax strategy. (1) 

Setting Up an At-Home Exercise Regimen

Yes, you can work out consistently without a gym membership or $200 shoes or fancy machines. Creating a home workout area, and routine, is often easier than many people think.

Buy a yoga mat, which is not only useful for yoga but also for providing some cushioning for your legs, feet, and hands. The mat also helps you mentally and visually define a workout space in your home, wherever you place it. Weights do not necessarily have to be standard dumbbells or kettlebells. There are some weighted multi-purpose exercise tools that you can buy, and even cans or filled backpacks can substitute. Stairs, stairwells, and step stools can help with step workouts. As to your routine, you can probably find one you like for free. Media outlets from Self to Men’s Journal to Wired to The New York Times offer home workouts and workout plans. So do the Mayo Clinic and AARP. There are also 30-day online workout programs – both paid and free – to choose from. Once you create a workout space and commit to a program, you may want to invest in workout gear, from clothing to fitness trackers to earbuds. (2)

On the Bright Side

The Internal Revenue Service updated its actuarial tables for 2022, basing them on an average life expectancy of 84.6 years, revised up from 82.4 years. This affects the formulas used to calculate mandatory annual withdrawals from retirement accounts. Yearly mandatory withdrawal amounts may now be smaller than they would have been under the old formulas. Please check with your tax or legal professional before modifying your strategy. (3)

1 – Forbes, November 11, 2021
2 – Wired, January 24, 2021
3 – Yahoo! News, January 18, 2022

The opinions voiced in this material are for general information only and are not intended to provide specific Securities offered through Cambridge Investment Research, Inc. a Broker/Dealer, member FINRA/SIPC. Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Lighthouse Financial, LLC and Cambridge are not affiliated.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.


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