October 26, 2018

Year-End Gifting Strategies

maxwealth managementThe tax year will be ending on December 31. If you have plans to make charitable gifts to family members, it’s last call to make those donations for 2018.

The Basics
If you have the financial ability and devotion to make lifetime gifts to family members, consider making them annually. The inflation adjustment for 2018 has increased the amount you can gift without being subject to a per-individual gift tax – $15,000 individual, or $30,000 for married couples. Keep in mind that gifting decisions should reflect any additional wealth transfers or estate planning steps you already have in place.

What are the best assets to gift?

An appreciated stock or mutual fund is a great way to maximize tax benefits. Many investors face combined long-term capital gains tax rates of close to 30%. That includes federal, state income taxes and health care surtax. But college grads often have a long-term capital gain rate of close to 0% on most investments until they start earning over $38,700 (for 2018). This creates the opportunity to make a tax-advantaged gift.

It’s almost always best to gift an asset that has appreciated in value instead of cash. It allows you to avoid paying tax on the unrealized gain of the donated assets, and increases your gifting while decreasing your tax burden.

Consider a Donor Advised Fund (DAF)

You can make a large gift now to take advantage of the 2018 tax deduction without having to commit to naming specific beneficiaries. These choices can evolve over time, and a DAF allows you to earmark assets now, while putting off final beneficiary decisions until later.

LMIS has officially become MaxWealth Management located at Lake Michigan Credit Union. Contact us today at (616) 234-6358 or visit LMCU.org/Investments to schedule a free, no-obligation portfolio review.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.

Securities and financial planning offered through LPL Financial, a registered Investment Advisor, Member FINRA/SIPC.Insurance products offered through LPL Financial or its licensed affiliates. Lake Michigan Credit Union and MaxWealth Management are not registered broker/dealers and are not affiliated with LPL Financial.

Not NCUA Insured. No Credit Union Guarantee. May Lose Value.

Hutt Scholarship Opening!

hutt scholarship topic

2018-19 Lloyd F. Hutt Scholarship Open for Submissions, November 1 – January 31, 2019

For nearly 30 years, LMCU’s Lloyd F. Hutt Scholarship program has helped graduating high school seniors afford college. This year, 15 winning applicants will receive $2,000 each.

Entrants are asked to write an essay that addresses a select topic. This year’s theme is “But we’ve always done it that way: name something you’d change and why”. An independent panel of judges will evaluate all entries, with an emphasis on passion, creative thinking, clarity and originality. This program is open to high school seniors in Michigan and Florida. Winners will be announced May, 2019.

If you’re a high school senior who plans on enrolling in college, a university, a trade school, or other form of higher education in the next academic school year (or know one), visit LMCU.org/Hutt to get started.

Good luck, seniors!

Santa Squad is Coming to Town December 1

LMCU’s annual Santa Squad initiative focuses on giving back to our communities, with special events planned for every day in December right up until Christmas Eve.

Starting December 1, you can keep up with our Santa Squad festivities, events and plans by following us on LMCU’s Facebook and Instagram. We’ll be throwing a few surprises into the mix, sobe good for goodness sake.

LMCU Night with the Griffins

We’re teaming up with the American Hockey League’s Grand Rapids Griffins again this season for our annual LMCU Night With The Griffins event at Grand Rapids’s Van Andel Arena! Come join us for the Saturday, February 9 game against the Wilkes-Barre/Scranton Penguins with special ticket package pricing and swag. Game on!

Saturday, February 9, 2019 | 7:00 p.m. Van Andel Arena

- Lower Bowl Package: $20 each
- Upper Bowl Package: $15 each

Each package includes your game ticket, $3 food voucher and a free commemorative t-shirt. And the first 2,000 fans to arrive at the game will also get a free LMCU/Griffins bobblehead.

You can purchase LMCU Night with the Griffins ticket packages at any LMCU branch location or call us at (800) 242-9790. Tickets will be distributed by mail this year and are available while supplies last.

See you at the Van Andel Arena!

"LMCU has my back."

Steel 21 in Cedar Springs, MI

Steel 21’s President, Kimm Slater, has been in the manufacturing business for decades. Starting with his family’s original business, Maco Steel, followed by over 30 years of steel plate processing experience, Slater wanted to do things differently.

He founded Steel 21 in 2014, headquartered in Cedar Springs, MI. His goal was to do what he’d always done, but with greater efficiency, and without the toxic waste conventional methods produce.

In the steel processing business, ‘flat and parallel’ is king. Slater’s new process, 21 Micro Mill, produces steel plates that are flatter, smoother and more parallel, and within closer tolerances than the 114-year-old conventional Blanchard grinding technology that most other mills use. The process produces higher quality plates in less time, saving their customers time and money.

The 21 Micro Mill process is also 100% recyclable, eliminating toxic waste in an area increasingly overrun by ground water contamination.

Slater needed a financial backer, so he contacted an old family friend and business colleague, Jim Maskell, head of LMCU’s Commercial Lending division.

“Jim and LMCU didn’t hesitate to help set up a $2 million line of credit to get our new facility up and running. For many years, I was a loyal customer at another Grand Rapids business bank. Over time, I realized they had turned increasingly political, and worked to secure their own advantage at the expense of smaller clients. Jim helped me walk away from all of that.”

Starting with a handful of employees in 2014, Steel 21 now provides over 50 well-paid manufacturing positions and is planning to expand for the third time in less than four years.

“LMCU has my back,” Slater said. “That’s something you just can’t put a price on.”