How Giving Can Help You Have More in Retirement
When we think about building wealth for retirement, we often focus on saving, investing, and planning. But what if one of the best ways to gain more in retirement is by giving more? The timeless principle, “It’s better to give than to receive,” isn’t just a line passed down from your mom — it’s a practical financial strategy and a pathway to fulfillment.
In this blog, we explore how generosity can transform your retirement journey, from tax-saving strategies to the emotional rewards of giving.
The Emotional Benefits of Giving
Retirement isn’t just about financial security—it’s about finding fulfillment and purpose in your next chapter. One of the most powerful ways to achieve that is through generosity. Giving goes beyond the act itself; it creates emotional rewards that enhance your well-being and enrich your life.
Generosity Brings Joy
There’s a unique sense of joy that comes from giving to others, often described as a “helper’s high.” Scientific research supports this, showing that acts of generosity activate the brain’s reward centers, releasing feel-good hormones like dopamine. Whether it’s helping a neighbor, supporting a favorite cause, or gifting a family member, the emotional payoff is undeniable.
Building Stronger Connections
Giving fosters a sense of connection and community. Whether you’re donating to a local nonprofit or volunteering your time, acts of kindness bring you closer to others. These connections can be especially meaningful in retirement, helping to combat feelings of isolation and reinforcing a sense of belonging.
Aligning Actions with Values
For many retirees, giving becomes a way to live out their values. It’s an opportunity to support the causes you believe in, reflect on your legacy, and make a difference in areas that matter most to you. This alignment between action and values brings a profound sense of satisfaction.
This is the magic of giving: it connects us, uplifts us, and brings meaning to our lives.
The Financial Advantages of Giving
Generosity doesn’t only feel good—it’s smart for your wallet, too. Strategic giving can reduce your tax burden and help you make the most of your retirement plan.
Tax-Saving Strategies for Giving
Donor-Advised Funds (DAFs):
DAFs let you donate now and decide later which charities to support. They’re perfect for those who want to secure a tax deduction this year while taking time to research where their money will have the most impact.Qualified Charitable Distributions (QCDs):
If you’re over 70½, you can use QCDs to donate directly from your IRA. This reduces your taxable income and satisfies required minimum distributions (RMDs). A win-win for you and your favorite cause!Appreciated Stock Donations:
Donating stock that has increased in value allows you to avoid capital gains taxes while still claiming the full value of the stock as a deduction. Imagine giving $100,000 of stock purchased for $10,000 and skipping the tax on the $90,000 gain. Smart, right?
Practical Giving Tips for Retirees
Giving doesn’t have to be complicated. Here are some simple ways to start:
Cash or Checks: The easiest way to give, especially for last-minute donations before year-end.
Non-Cash Assets: Consider donating cars, real estate, or other valuable items. Just ensure the charity can process them in time for your deduction.
Recurring Donations: Set up regular contributions to your favorite charities for consistent impact.
Start Your Journey of Giving
Ready to embrace the joy of giving? Here’s how to begin:
Identify Causes You Care About: Think about what matters most to you—whether it’s education, healthcare, or supporting your local community.
Work with a Financial Advisor: Partnering with an expert ensures your giving strategy maximizes benefits for both you and the causes you support.
Take Action: Whether it’s setting up a donor-advised fund, donating stock, or giving your time, start today.
The Road Ahead
The more you give, the more you gain—not just in tax benefits but in purpose, joy, and connection. This holiday season, consider taking a step toward generosity. Whether it’s leaving a generous tip, donating to a favorite charity, or exploring advanced giving strategies, every act of giving makes a difference.
Challenge: This year, try giving something unexpected—a $100 tip, a donation to a cause you love, or simply your time. You might find that giving brings you more joy than receiving ever could.
Ready to Start Your Journey?
Want to explore how giving can enrich your retirement? If you need more tips or want a personalized road map to retirement, tune in to the Retirement Roadtrip Show. You can also check out Greg’s book Have More by Giving More in Retirement.